CAFR 2010 | Middletown Bucks

MIDDLETOWN TOWNSHIP BUCKS COUNTY, PENNSYLVANIA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

December 31, 2010

MIDDLETOWN TOWNSHIP


December 31, 2010

TABLE OF CONTENTS

INTRODUCTORY SECTION

Organizational Chart ............................................................................................................... i

List of Principal Officials ....................................................................................................... ii

Map of Bucks County, Pennsylvania .................................................................................... iii

FINANCIAL SECTION

Independent Auditors' Report ............................................................................................. 1-2

Management's Discussion and Analysis (Unaudited) ....................................................... 3-16

Basic Financial Statements

Government-Wide Financial Statements

Statement of Net Assets ......................................................................................... 17

Statement of Activities ........................................................................................... 18

Fund Financial Statements

Balance Sheet Governmental Funds ..................................................................... 19

Reconciliation of Total Governmental Funds Balance Sheet to the Statement of Net Assets ...................................................................................... 20

Statement of Revenues, Expenditures and Changes in Fund Balances-

Governmental Funds ........................................................................................... 21

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities ........................... 22

MIDDLETOWN TOWNSHIP


December 31, 2010

T ABLE OF CONTENTS

Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual - General Fund .............................................................................. 23

Proprietary Funds

Statement of Net Assets- Proprietary Funds .......................................................... 24

Statement of Revenues, Expenses and Changes in Net Assets-

Proprietary Funds ................................................................................................ 25

Statement of Cash Flows- Proprietary Funds ........................................................ 26

Fiduciary Funds

Statement of Net Assets- Fiduciary Funds ............................................................ .27

Statement of Changes in Net Assets- Fiduciary Funds .......................................... 28

Notes to Financial Statements ................................................................................... 29-56

Required Supplementary Information ............................................................................. 57

Schedule of Funding Progress for the Other Post Retirement Benefits ................. 58

Schedule of Funding Progress for Pension Plans .................................................. 59

Note to Required Supplementary Information ....................................................... 60

Non-Major Governmental Funds - Special Revenue Fund ............................................. 61

Non-Major Governmental Funds - Capital Project Funds .............................................. 62

Combining Balance Sheet. ............................................................................... 63

Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - .......................................................................................... 64

MIDDLETOWN TOWNSHIP


December 31, 2010

TABLE OF CONTENTS

Budgetary Comparison Schedules Non-major Special Revenue Funds, Debt Service Fund and Capital Project Funds ..................................................................... 65

General Street Lighting Fund ..................................................................................... 66

Fire Protection Fund ................................................................................................... 67

Parks and Recreation Fund ......................................................................................... 68

Ambulance and Rescue Squad Fund .......................................................................... 69

Road Machinery Fund ................................................................................................ 70

Fire Hydrant Fund ...................................................................................................... 71

State Highway Aid Fund ............................................................................................ 72

Debt Service Fund ...................................................................................................... 73

General Obligation Bond Issue of 1997 Fund ............................................................ 74

General Obligation Bond Issue of2006 Fund ............................................................ 75

General Obligation Bond Issue of2008 Fund ............................................................ 76

Community Development Fund ............................................................. 77

Capital Reserve Fund ................................................................................................. 78

Curb/Road Revolving Fund ........................................................................................ 79

Contingency Fund ...................................................................................................... 80

Investment Fund ......................................................................................................... 81

Statement of Changes in Assets and Liabilities - Township Escrow Fund ................................ 82

STATISTICAL SECTION (UNAUDITED) ..................................................................... 83-101

BOARD OF AUDITORS

TOWNSHIP OF MIDDLETOWN

ORGANIZATIONAL CHART

CITIZENS

ELECTED OFFICIALS

BOARD OF SUPERVISORS

SUPERVISOR APPOINTED OFFICIALS

TAX COLLECTOR

ENGINEER SOLICITOR

TOWNSHIP MANAGER

LICENSES & PUBLIC COMMUNITY FINANCE POLICE FIRE & EMERGENCY PARKS & INSPECTIONS WORKS SERVICES MANAGEMENT RECREATION

APPOINTED CITIZENS ADVISORY BOARDS & COMMISSIONS

Zoning Hearing Board Planning Commission Park & Recreation Board Historic Preservation Commission Environmental Advisory Council Drug & Alcohol Commission Financial Advisory Committee Disabled Persons Advisory Board Cable & Telecommunications Advisory Board Teen Task Force Youth Aid Panel Technical Code Board of Appeals Community Beautitication Committee Duty Tow Arbitration Panel

Veterans Memorial Park Committee

2010 BOARD OF SUPERVISORS

Thomas Gallagher, Chairperson

Patrick Mallon, Vice Chairperson

H. George Leonhauser, Secretary

Drew Kreiling, Member

Robert G. McMonagle, Member

EXECUTIVE OFFICIALS

Deborah Lamanna, Acting Township Manager and Director of Parks and Recreation

Joseph Pizzo, Esq., Township Solicitor

Patrick Duffy, P.E., Township Engineer

James Kane, Chief of Police

Dennis M. Penko, Director of Finance

Erich Wendel, Director of Public Works

James Peet, Director of Licenses & Inspections

James McGuire, Fire Marshal

HILLTOWN

TOWNSHIP OF MIDDLETOWN Bucks County, Pennsylvania

BEDIIINSTER

111

NOCKAMIXON

TlNtCUM

INDEPENDENT AUDITORS' REPORT

To the Board of Supervisors Middletown Township Bucks County, Pennsylvania

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of Middletown Township, Bucks County, Pennsylvania (the "Township"), as of December 31, 2010, and for the year then ended, which collectively comprise the Township's basic financial statements as listed in the table of contents. We have also audited the financial statements of each of the Township's nonmajor governmental funds presented in the accompanying combining and individual fund financial statements and schedules as of and for the year ended December 31, 2010, as listed in the table of contents. These basic financial statements are the responsibility of the Township's management. Our responsibility is to express an opinion on these basic financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Township'S internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the Township, as of December 31, 2010, and the respective changes in its financial position and cash flows where applicable, thereof and the budgetary comparison for the general fund, for the year then ended in conformity with accounting principles generally accepted in the United States of America. In

1

INDEPENDENT AUDITORS' REPORT (CONTINUED)

addition, in our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each nonmajor governmental fund of the Township as of December 31, 2010 and the respective changes in financial position and cash flows, were applicable, thereof and the budgetary comparison for the debt service fund, and investment fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Management's discussion and analysis and the schedules of funding progress for the Other Post Retirement Benefits, and the schedule of funding progress for Pension Plans, and the related note on pages 3 through 16 and pages 58 through 60, respectively, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.

MERCADIEN, P.C. CERTIFIED PUBLIC ACCOUNTANTS

q~~LfJC ~FlelJk

June 24, 2011

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MIDDLETOWN TOWNSHIP

MANAGEMENT'S DISCUSSION AND ANALYSIS ("MD&A")

REQUIRED SUPPLEMENTARY INFORMATION ("RSI")

For the Fiscal Year Ended December 31, 2010

Unaudited

The Management's Discussion and Analysis ("MD&A") of the Township of Middletown's financial performance provides an overall review of the Township's financial activities for the fiscal year ended December 31,2010. The intent of this discussion and analysis is to look at the Township's financial performance as a whole. Readers should also review the independent auditor's opinion letter, the notes to the basic financial statements, and the financial statements themselves to enhance their understanding of the Township's financial performance.

The first group of basic financial statements required by Governmental Accounting Standards Board Statement 34 ("GASB 34") is the government-wide financial statements, which are comprised of the Statement of Net Assets and Statement of Activities. These statements report all of the assets, liabilities, revenues, and expenses of the Township. They are prepared using the economic resources measurement focus and the accrual basis of accounting. The government-wide financials provide both long-term and short-term information about the Township's overall financial status.

The remaining statements are fund financial statements which focus on the government's major governmental· and enterprise funds. Governmental fund financials are prepared using the current financial resources measurement focus and the modified accrual basis of accounting. The governmental funds statements tell how general Township services were financed in the short-term as well as what remains for future spending.

Proprietary fund statements offer financial information about the activities that the Township operates like a business, that being the Middletown Country Club and the Styers Farm. Fiduciary fund statements provide information about financial relationships where the Township acts solely as a trustee or agent for the benefit of others to whom the resources actually belong, i.e. Pension and Escrow Funds. Both the Proprietary and Fiduciary fund statements are prepared using the economic resources measurement focus and the accrual basis of accounting.

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. In addition, required supplementary information ("RSI") is presented, including a budgetary comparison schedule for the General Fund.

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MIDDLETOWN TOWNSHIP



For the Fiscal Year Ended December 31 , 2010

Unaudited

Figure 1 demonstrates how the required parts of the Financial Section are ananged and relate to one another.

Figure 1 Required Components of

Middletown Township ' s Financial Rep0l1

.--------------------------~

Management Discussion and Analysis

Government-Wide Financial Statements

Government-Wide Statements

Basic Financial Statements


Required Supplementary Infonnation

Notes to the Financial Statements

The government-wide statements report infOlmation about the Township as a whole using accounting methods similar to those used by private sector companies. Financial reporting at this level has its basis in full accrual accounting and eliminates or reclassifies intemal activities.

The Statement of Net Assets on page 17 includes all of the govemment's assets and liabilities, with the difference reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Township as a whole is improving or deteriorating. To assess the overall health of the Township, you need to consider additional non-financial factors, such as changes in the property tax base and the condition of Township infrastructure.

The Statement of Activities on page 18 reports how the Township's net assets have changed during the cunent fiscal year. It accounts for all of the CUlTent year' s revenues and expenses regardless of when cash is received or paid. It also reports depreciation. An important purpose of this statement is to show the financial reliance of the Township's distinct activities or functions on the revenues provided by the Township's taxpayers. This is accomplished by displaying expenses net of program revenue, allocating program revenue to the particular expense categories they offset. General revenues, such as taxes, are reported separately.

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MIDDLETOWN TOWNSHIP




Unaudited

The government-wide financial statements of the Township are divided into two categories:

• Governmental activities - All of the Township's basic services are included here financed by taxes, fees, contributions and grants.

• Business type activities - The Middletown Country Club Fund and the Styers Farm Fund are included here recovering their costs through user fees and charges.


A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The Township uses funds to ensure and demonstrate compliance with financerelated laws and regulations. Some funds are required by state law and/or by bond requirements. Within the basic financial statements, fund financial statements focus on the Township's most significant funds rather than the Township as a whole. Major funds are separately reported while all others are combined into a single, aggregated presentation.

Governmental Funds - Most of the Township's activities are reported in governmental funds, which focus on the determination of financial position and changes in financial position, not on income determination. They are reported on a modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. The focus of these statements is to provide a detailed short-term view of the Township's operations and the services it provides. It reports on the use of spendable resources during the year and the balances of spendable resources available at the end of the year. This information helps the reader determine whether there are sufficient resources that can be spent in the near future to finance the Township's programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and the governmental funds is reconciled in the financial statements on page 20 and 22.

Proprietary Funds - These funds are used to account for the Township activities that are similar to business operations in the private sector. That is, an activity where the reporting is on determining net income, financial position, and changes in financial position, and a significant portion of the activity's funding is through user charges. Proprietary fund statements provide both short- and long-term financial information consistent with the focus provided by the government-wide financial statements but with more detail and additional information, such as cash flows.

Fiduciary Funds - These funds, such as the Pension Funds and the Township Escrow Fund, are reported in the fiduciary fund financial statements, but are excluded from the government-wide reporting. These activities are excluded because the Township cannot use these assets to finance its operations. These funds may also be referred to as Trust and Agency Funds.

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MIDDLETOWN TOWNSHIP


REQUIRED SUPPLEMENT AR Y INFORMATION ("RSI")

F or the Fiscal Year Ended December 3 1, 2010

Unaudited

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on page:::!9 through 56 of this report.

Financial Analysis of the Township as a Whole

Net assets may serve, over time, as a useful indicator of a government's financial position. In Middletown Township, assets exceed liabilities by $70,260,891 and $71,209,220 at the close of the years ended December 31, 2010 and 2009, respectively.

The following table provides a summary of the Township's net assets at December 31, 2010 and December 31, 2009:

Current and Other Assets Capital Assets

Total Assets

Current and Other Liabilities Long-Te'lll Liroilities

Total Liabil ities

Net Assets fnvesUl1ent in Capital Assets,

net of relate::! debt RestJ;cted U nres Iri cted

Total Net Assets

$

$

$

$

$

$

Table 1 Summary of Net Assets

F or the Years Ending 12/31/10 and 12/31/09

(Government-Wide)

Govemmental Activities Business-Type Activities 2010 2009 2010 2009

53.600.121 $ 55,798,399 $ 432,542 $ 448,805 $

51,455,105 51,206,198 4,492,127 4,573,175 $

105,055,226 $ 107,004,597 $ 4,924,669 $ 5,021,980 $

3,991,235 $ 3,634,762 $ 545,147 $ 574,901 $ 30,803,100 32,160,615 351,525 411,215

34,794,335 $ 35,795,377 $ 896,672 $ 986,116 $

21,564,018 $ 5,098,898

43,597,975

19,432,022 $ 4,492,127 $ 4,105,739 $ 9,774,983

42,002,215 (464,130) (69,875)

70,260,891 $ 71,209,220 $ 4,027,997 $ 4,035,864 $

Total 2010

54,032,663 $

55,947,232

109,979,895 $

4,536,382 $ 31,154,625

35,691,007 $

26,056,145 $ 5,098,898

43,133,845

74,288,888 $

2009

56,247,204

55,779,373

112,026,577

4,209,663 32,571,830

36,781,493

23,537,761 9,774,983

41,932,340

75,245,084

The current assets of the Township are comprised of cash, short-term investments, and accounts receivable. The largest portion of the current assets balance is made up of cash and investments held by the Investment Fund ($41.8 million in 2010). The Township's capital assets are comprised ofland, buildings, machinery & equipment, and infrastructure, net of accumulated depreciation. The Township uses these capital assets to provide services to the citizens; consequently, these assets are not available for future spending. Although the Township'S investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Recent capital asset additions are discussed later in this report and in Note C to the Basic Financial Statements.

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MIDDLETOWN TOWNSHIP


REQUIRED SUPPLEMENTAR Y INFORMATION ("RSI")

F or the Fiscal Year Ended December 31, 2010

Unaudited

Current liabilities consist of accounts payable, various accruals and the current portion of long term liabilities. Long-term liabilities include principal balances owed on various general obligation bonds and notes, and accrued sick and severance pay. The outstanding principal on the 2006, 2008, 2009 and 2010 bond issues make up $29,930,000 of the long-term liabilities balance at year end 2010. Debt administration is discussed later in this report and in Note D to the Basic Financial Statements.

The difference between the assets and liabilities is labeled as net assets. Net assets are broken down as Capital, Restricted and Unrestricted. Net Assets, investment in capital assets is reported net of accumulated depreciation and any outstanding principal owed on related debt. Restricted net assets are restricted by outside parties: creditors, grantors, contributors, or other governments. They are restricted for items such as debt service, arbitrage rebates, and specific capital projects. The remaining unrestricted net assets are comprised of designated and undesignated amounts. The designated balances are amounts set aside to fund future purchases or capital projects as planned by the Township. Undesignated amounts are not currently the object of any tentative management plans.

Governmental Activities decreased the Township's net assets by $948,329 during the current fiscal year. This is an improvement over the 2009 decrease in net assets of $2,484,309, and is indicative of a renewed effort by the Township to control costs, by limiting expense growth to 1.9%, and to enhance revenues.

Business-Type Activities decreased the Township's net assets by $7,867 during the current fiscal year. These activities are comprised of the Middletown Country Club and the Styer's Farm. This modest decrease is slightly unfavorable to the 2009 increase in net assets of $4,719.

The result of this year's operations as a whole are reported in the Statement of Activities on page 18. All expenses are reported in the first column. Specific charges, grants, and contributions that directly relate to specific expense categories are netted against them to determine the final amount of the Township's activities that are supported by other general revenues, primarily Property Taxes and Other Taxes (Act 511 Taxes). Basically, the Statement shows which Township expenses are funded by specific program revenues and the balance of expenses left to be funded by tax revenues.

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MIDDLETOWN TOWNSHIP




Unaudited

Table 2 takes the information from the Statement of Activities and rearranges it slightly by showing the Township's total revenues for the year ended December 31,2010, compared to December 31, 2009.

Table 2 Changes in Net Assets

For the Years Ending 12/31110 and 12/31/09 (Government-Wide)

Governmental Activities Business-Type Activities Total 2010 2009 2010 2009 2010 2009

Revenues: Program Revenues:

Charges for Services $ 7,400,084 $ 7,133,487 $ 182,000 $ 182,000 $ 7,582,084 $ 7,315,487 Operating Grants/Contributions 2,192,687 2,054,509 2,192,687 2,054,509

General Revenues:

Property Taxes 9,246,523 8,602,678 9,246,523 8,602,678 Other Taxes 4,419,632 4,001,130 4,419,632 4,001,130 [nvestment Income 1,168,697 488,609 4,804 9,370 1,173,501 497,979 Miscellaneous 7,285 97,677 7,285 97,677

Total Revenues $ 24,434,908 $ 22,378,090 $ 186,804 $ 191,370 $ 24,621,712 $ 22,569,460

Expenses:

General Government $ 2,023,182 $ 1,895,527 $ $ $ 2,023,182 $ 1,895,527 Public Safety 12,218,168 12,190,862 12,218,168 12,190,862 Public Works 6,719,377 6,615,980 6,719,377 6,615,980 Parks and Recreation 1,825,931 1,402,496 1,825,931 1,402,496 Miscellaneous 672,637 695,397 672,637 695,397 Interest on Long Term Debt 1,168,279 1,365,635 16,993 21,416 1,185,272 1,387,051 Unallocated Depreciation

on I nfiastructure 1,455,222 1,433,205 1,455,222 1,433,205 Business-Type Activities 158,315 145,872 158,315 145,872

Total Expenses $ 26,082,796 $ 25,599,102 $ 175,308 $ 167,288 $ 26,258,104 $ 25,766,390

Change in Net Assets before special item and transfers $ (1,647,888) $ (3,221,012) $ 11,496 $ 24,082 $ (1,636,392) $ (3,196,930)

Special item - Capital Assets from Private Purpose Trust 680,196 717,340 680,196 717,340 Transfers, net 19,363 19,363 (19,363) (19,363)

Change in Net Assets $ (948,329) $ (2,484,309) $ (7,867) $ 4,719 $ (956,196) $ (2,479,590)

Net Assets-beginning of year $ 71,209,220 $ 73,693,529 $ 4,035,864 $ 4,031,145 $ 75,245,084 $ 77,724,674

Net Assets-end of year $ 70,260,891 $ 71,209,220 $ 4,027,997 $ 4,035,864 $ 74,288,888 $ 75,245,084

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MIDDLETOWN TOWNSHIP




Unaudited

The following chart shows the Government-wide sources of expenses and related program revenues for the year ended December 31, 2010:

2010 Expenses and Program Revenues

Millions

$14

$12

$10

$8

$6

$4

$2

$-

• Expenses

• Program Revenues

General revenues are required to support the programs. As reflected in the above chart program expenses exceed program revenues in all areas. General government expenses exceed program revenues by $602,768 public safety by $9,877,679, public works by $1,202,999 and park and recreations by $1,510,441.

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MIDDLETOWN TOWNSHIP



For the Fiscal Year Ended December 31 ,2010

Unaudited

The following chart shows the Government-wide sources of revenues for the year ended December 31 , 2010:

2010 Revenues by Source-. Governnlental Activities Im'estment ~

In come "'" ,,0 ' . 0

Operating Grants!

Contributions 90 0

Of the total Government-wide revenues of $25,134,467, the greatest share came from Property Taxes with revenues of $9,246,523. The second largest revenue source is Charges for Services with revenues of $7,400,084, primarily made up of fees for solid waste collection in the amount of $4,364,724. Other Taxes include the Township' s Act 511 taxes such as the Local Services, Per Capita, Real Estate Transfer, Mercantile, Amusement, and Mechanical Device Taxes with combined revenues of $4,419,632. Operating Grants and Contributions brought in $2,192,687. Investment income improved to 50% of 2009 levels, netting the Township $1,168,697. Miscellaneous Income and Net Transfers comprise the balance of the 2010 revenues for governmental activities .

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MIDDLETOWN TOWNSHIP




Unaudited

The following chart shows the Government-wide sources of program expenses for the year ended December 31 , 2010:

2010 Prognlln ExpensesGovernnlental Activities

• General Gm"el1l1uent

• PuhlicWorKs

• ~Iiscellnneou s

Unilllocilted Depreciation

• Public Safety

• Pmks mlCl Recreation

Interest on Long Tertn Debt

The largest share of expenditures in 2010 were related to Public Safety, a broad category including police protection, animal control, school crossing guards, fire marshal ' s services, code enforcement, planning and zoning, and emergency management. Public Safety expenses totaled $12,218,168 for 2010. Public Works expenses include items such as solid waste collection expenses, general road maintenance, repairs to tools and machinery, construction and rebuilding of stonn sewers and guide rails, operation and maintenance of traffic signals, street signs, and snow removal. Public Works expenses totaled $6,719,377 for 2010. General Government expenses of$2,023 ,182 make up the third largest segnlent of 2010 expenses. This category covers the costs of staffing, benefits, and other administrative costs and ancillary expenses. Parks and Recreation expenses of $1 ,825 ,931 fund the operation and maintenance of our Township parks, park buildings, and park equipment as well as administrative costs and Township recreation programs. Depreciation expenses of $1 ,455,222, Interest on Long-Tenn Debt of $1 ,168,279, and Miscellaneous expenses of $672,637, primarily insurance expense, round out the 2010 total program expenses for governmental activities.

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MIDDLETOWN TOWNSHIP




Unaudited

The following charts show the expenses and program revenues and the revenues by source from Business-Type Activities for the year ended December 31, 20 1 0:

2010 Expenses and Program Revenues - Bu sines s-Type Activities

$160,000

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$-Country

Club Styers Farm

II ChaJ"ges for Services

o Total Expenses

2010 Revenues by Source -Business Type Activities

Charges for

Services 100%

Interest Eanlings

0%

Business-Type Activities decreased the Township' s net assets by $7,867 during the cunent fiscal year. The Middletown Country Club revenues totaled $147,000 with offsetting expenses of $121,846 for an operating income of $25,154. After non-operating expense, which consists of interest expense of $16,993 offset by interest income of $387, the result is an income before transfers of $8,548. The Styer' s Farn1 revenues totaled $39,200 for the year with offsetting expenses of $36,469 for an operating income of $2,731. After investment income for the fund of $217, the result is an income before transfers of $2,948. The overall decrease in net assets is attributable to higher maintenance expenses in the fann fund .

The Township Fund Balances

As noted earlier, the Township of Middletown uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

The focus of Middletown Township's governmental funds is to provide infonnation on near-tenn inflows, outflows, and balances of spendable resources . Such infOlmation is useful in assessing the Township's financing requirements. In pmiicular, umeserved fund balance may serve as a useful measurement of a government's net resources available for spending at the end of the fiscal year.

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MIDDLETOWN TOWNSHIP

MANAGEMENT'S DISCUSSION AND ANAL YSIS ("MD&A")

REQUIRED SUPPLEMENT AR Y INFORMATION ("RSI")

For the Fiscal Year Ended December 31,201 ° Unaudited

At December 31, 2010, the Township governmental funds reported a combined fund balance of $51,985,073. Of this year-end total, approximately $50,072,353 is unreserved, and therefore is available for continuing Township services. Reserved fund balances include: $1,061,953 committed to debt service requirements; $476,426 committed to advances; and $374,341 committed to transportation impact fee requirements.

The general fund is the primary operating fund of Middletown Township. At year end 2010, the total fund balance of the general fund was $2,065,794, all of which is unreserved and undesignated. This fund balance represents 11.7% of total general fund expenditures. During 2010, the general fund balance increased by $1,297,085, significantly better than the deficit planned in the 2010 budget. This is a result of a concerted effort to control expenditures, and better performance in revenue than planned.

The investment fund has a total fund balance of$41,789,599 at fiscal year end, a decrease of$853,746 from the prior year. This is the result of lower than anticipated investment earnings of the Township's investment portfolios.

The debt service fund has a total fund balance of $403,969. All revenues derived from the real estate tax levy of the Debt Service Fund are used to pay interest and principal on indebtedness incurred by the Township through bond issues and interfund loans. The 2010 budget provides for a real estate tax rate of 6.00 mills for the fund; an increase of 1.62 mills over 2009.

The Township of Middletown's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

The unrestricted net assets of the County Club fund total $27,000 at year end 2010. The total net assets are $1,797,302. The Municipal Golf Course Capital Improvement Program which had been delayed due to economic conditions got under way in late 2010 and will be completed in early 2011 at a cost of $479,764. The Country Club is supported completely by non-tax revenues.

The unrestricted net assets of the Styer's Farm fund is a net deficit of $79,915 at year end 2010. The total net assets are $2,230,695. The property is a valuable asset to the Township and management continues to strive to improve the financial reserves of the fund.

The General Fund Budget

During the year there was a $252,100 increase in budgeted expenditures, with an offsetting $252,000 increase in budgeted revenue, thereby increasing net expenditures by $100 between the original and final amended budget.

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MIDDLETOWN TOWNSHIP

MANAGEMENT'S DISCUSSION AND ANAL YSIS ("MD&A")

REQUIRED SUPPLEMENTAR Y INFORMATION eRSI")


Unaudited

Supplemental appropriations were made to the following expenditure accounts: Police Administration-Workers Compensation, $80,000; Licenses and Inspections - Contracted Services, $90,000; Emergency Management- Salary- DPW, $3,000; Administration- Hospitalization Insurance, $60,000; Tax Collector - Printing/Postage, $2,000; Tax Collector - Bond, $4,000; Health & Sanitation - Residential Collection, $13,000; DARE Salaries, $100.

Supplemental appropriations were possible because of higher than anticipated revenue: Amusement Taxes, $239,000; Sanitation Fees- Penalties & Interest, $13,000.

A schedule showing the Townships original and final budget amount compared with amounts actually paid and received is provided on page 23.

Capital Assets

At December 31,2010, the Township had $55,947,232 invested in a broad range of capital assets, including land, land improvements, buildings, machinery & equipment and infrastructure.

Capital asset purchases totaled $2,907,161 during the 2010 fiscal year as follows: Land Improvements - $940,059; Building and improvements - $371,754; Machinery and equipment -$974,212; and Infrastructure - $621,136.

Land improvements include site improvements to Beechwood, Simmons, Twin Oaks and Veterans Memorial parks.

Building and building improvements are comprised of the finalization of construction and engineering services for the new DPW (Public Works) building, and the North Middletown Emergency Services substation, and renovations to the Middletown Community Center.

Infrastructure expenditures are comprised of the Levittown Road Resurfacing Program, 2010 Road Repaving Program, the 2010 Drainage Improvement Program, and the Route 213 & Old Lincoln Highway upgrade.

Machinery and equipment capital asset additions include: three 2010 Ford Crown Victoria police vehicles; two 2011 Ford F350 Trucks for DPW; two 2011 Ford F250 Trucks for the Fire Marshall's office, as well as auxiliary equipment for the vehicles; a New Holland Tractor with Mower attachment, and Commerical Mower for DPW; and two 2010 Spartan Rescue Pumper Fire Trucks.

Additional information on Middletown Township's capital assets can be found in Note C on page 39 of this report.

14

MIDDLETOWN TOWNSHIP



For the Fiscal Year Ended December 31,2010

Unaudited

Debt Administration

As of January 1, 2010, the Township had total outstanding long-term debt of $34,749,143 (principal only). Obligations of the Township include general obligation bond and notes, the Middletown Country Club Note, accrued vacation, sick and severance pay for specific employees and other post retirement benefit liabilities for police. The outstanding long-term debt balance at December 31, 2010, is $33,508,211.

Moody's Investor Services affirmed and recalibrated the Middletown Township's general obligation bond ("GOB") rating from Aa3 to Aa2 on April 23, 2010. The Aa2 rating reflects the Township's ample reserve levels, sizable mature tax base and favorable debt position. Moody's Investors Service expects the Township reserve levels to remain ample despite a substantial budgeted use of General Fund balance. They believe that the Township will continue to experience full valuation growth, due mostly to market value appreciation. Furthermore, on April 20, 2010, Standard and Poor's Ratings Services reaffirmed its AA+ bond rating for Middletown Township bonds. Both of these ratings are clear indications of the sound financial condition of the Township. The Township's debt position is expected to remain favorable, reflecting a modest direct debt burden, no additional borrowing plans and an average amortization rate.

The Middletown Country Club note has an outstanding balance of $411,214 at December 31, 2010. Principal payments of $56,221 were made during the year. Compensated absences reflect a balance of $1,132,212 in earned vacation, vested sick pay and vested severance pay as of December 31, 2010. The net decrease in compensated absences is $72,987 for the year. Other Post Employment Benefits has an outstanding liability of$2,147,238 at December 31,2010.

See Note D to the Financial Statement for more detailed information regarding debt.

Currently known Facts, Decisions, and Conditions:

The Middletown Township Financial Advisory Committee (F AC) was established to serve as an advisor to the Middletown Township Board of Supervisors, Township Manager and Finance Director on matters pertaining to issues of financial impact. This seven-member committee meets monthly and serves in an advisory capacity on items such as investments, debt management, and capital improvement funding.

15

MIDDLETOWN TOWNSHIP

MANAGEMENT'S DISCUSSION AND ANAL YSrS ("MD&A")

REQUIRED SUPPLEMENTARY INFORMA TrON ("RSI")


Unaudited

In 2010, the Township submitted ten (10) applications for Project Funding to the Bucks County Redevelopment Authority C"RDA") for 2011 Pennsylvania Gaming Revenue Grants. The Township received RDA Funding approval for 9 of the 10 project applications submitted, totaling $949,024. The grants are for 2011 projects, benefiting the Middletown Community as a whole, including the Fire Company, Emergency Squad, Police Department and the Township. A Summary follows:

Project Description

Middletown Municipal Center Swipe Card Access/Monitoring for the Municipal

$131,117 building

Middletown Police Dept Vehicles Six (6) Ford Crown Victoria to replace aging fleet 164,334

DPW Generator Backup generator for use during power outages affecting DPW Complex 42,250

Penndel-Middletown Emergency New Ambulance to replace aging and costly to Squad repair equipment 162,000

Parkland Fire Company New Fire Engine to replace' aging and costly to repair equipment 300,000

Middletown Police Dept Ten (10) in Cal' computers to replace aging and failing mobile data terminals 59,880

Penndel-M iddletown Emergency Construct and furnish a training room at the North

Squad Station to efficiently train emergency squad

48,313 members

Penndel-Middletown Emergency High Visibility Jackets for EMTs

Squad 13,560

Middletown Police Dept Tasers for the Police Department 27,570

Total $949,024

Other than those issues listed in the MD&A and in the Notes to the Basic Financial Statements, there are no facts currently known to management that would materially impact the financial statements either favorably or unfavorably at this time.

Contacting the Township's Financial Management

This financial report is designed to provide a general overview of the Township's finances, comply with finance-related laws and regulations, and demonstrate the Township's commitment to public accountability. If you have any questions about this report, or would like to request additional financial information, please contact the Township's Finance Department at 3 Municipal Way, Langhorne, PA 19047, (215) 750-3830.

16

MIDDLETOWN TOWNSHIP

STATEMENT OF NET ASSETS

December 31, 2010

ASSETS Current Assets

Cash and cash equivalents Investments

Taxes receivable, net of allowance of $2,905

Special assessment receivable, net of allowance of $1,609 Accounts receivable, net of allowance of $176,186 Revenue receivable

Due from other funds Other assets

Total Current Assets

Capital Assets (net of accumulated depreciation) Land

Land improvements Buildings and building improvements Machinery and equipment Infrastructure Accumulated depreciation

Total Capital Assets (net)

TOTAL ASSETS

LIABILITIES Current Liabilities

Accounts payable Accrued salaries and benefits Unearned revenue

Deposits and refunds Internal Balances Due to other governments

Accrued interest

Other liabilities

Bonds payable Note payable Compensated absences

Total Current Liabilities

Long-term Liabilities Bonds payable Bond discount, net of issuance costs

Note payable Compensate d absences

Other post-employment benefits Total Long-term Liabilities

TOTAL LIABILITIES

NET ASSETS lnvestment in capital assets, net of related debt

Restricted for

Debt service Transportation impact fee

Capital projects Unrestricted

TOTAL NET ASSETS

TOTAL LIABILITIES AND NET ASSETS

Governmental Activities

11,007,278 41,749,032

235,300

88,531 367,901 123,187 28,892

53,600,121

7,305,253 5,221,010

19,125,499 8,904,945

63,377,086 (52,478,688) 51,455,105

$ 105,055,226

1,205,457 318,991

23,361 111,754

(445,128) 77,057

327,652 4,658

2,255,000 25,088 87,345

3,991,235

27,675,000 (337,679) 273,673

1,044,868 2,147,238

30,803,100

34,794,335

21,564,018

403,969 374,341

4,320,588 43,597,975 70,260,891

$ 105,055,226

Business-Type Activities

188,678

218,864

25,000 432,542

3,355,000 648,439 956,026 691,199

(1,158,537) 4,492,127

4,924,669

1,974

12.250

445.128

26,105

59,690

545,147

351,525

351,525

896,672

4,492,127

(464,130) 4,027,997

4,924,669

See accompanying notes to financial statements. 17

Total

11,195,956 41,749,032

235,300

88,531 586,765 123,187 28,892 25,000

54,032,663

10,660,253 5,869,449

20,081,525 9,596,144

63,377,086 (53,637,225) 55,947,232

$ 109,979,895

1,207,431 318,991

35,611 111,754

77,057 327,652

30,763

2,255,000 84,778 87,345

4,536,382

27,675,000 (337,679) 625,198

1,044,868 2,147,238

31,154,625

35,691,007

26,056,145

403,969 374,341

4,320,588 43,133,845 74,288,888

$ 109,979,895

Functions!P rograms

GOVERNMENT ACTIVITIES

General government

Public safety

Public works

Parks and recreation Miscellaneous

Debt service interest

Unallocated depreciation expense

TOTAL GOVERNMENT ACTIVITIES

BUSINESS-TYPE ACTIVITIES

County Club

Farm Fund TOTAL BUSINESS-TYPE ACTIVITIES

TOTAL GOVERNMENT AND

BUSINESS-TYPE ACTIVITIES

MIDDLETOWN TOWNSHIP

STATEMENT OF ACTIVITIES

F or the Year Ended December 3 1, 2010

Program Revenues Net (Expense) Revenue and Changes in Net Assets

Primar:l Government

Charges for Operating Grants Government

EXEenses Services and Contributions Activities

$ 2,023,182 $ 1,017,264 403,150 $ (602,768)

12,218,168 1,678,755 661.734 (9,877,679)

6,719,377 4,451,210 1,065,168 (1,202,999)

1,825,931 252,855 62,635 (l,51 0,441)

672,637 (672,637)

1,168,279 (l,168,279)

1,455,222 (l,455,222)

26,082,796 7,400,084 2,192,687 (l6,490,025)

121,846 147,000

36,469 35,000

158,315 182,000

$ 26,241,111 7,582,084 2,192,687 (l6,490,025)

GENERAL REVENUES

Property taxes, levied for general purposes 9,246,523

Amusement tax 1,288,175

Local services taxes 953,403

Mercantile tax 1,025,104

Real estate transfer tax 720,569

Parking transaction fee 247,386

Other taxes 184,995

Interest and rents I.l68,697

Miscellaneous revenues 7,285

Special item-capital asset from private purpose trust 680,196

Transfers, net 19,363 TOTAL GENERAL REVENUES AND TRANSFERS 15,541,696

CHANGE IN NET ASSETS (948,329)

NET ASSETS, BEGINNING OF YEAR 71,209,220

NET ASSETS, END OF YEAR $ 70,260,891


Business-Type Activities

$

(16,993)

(16,993)

25,154 (l,469)

23,685

6,692

4,804

(19,363) (14,559)

(7,867)

4,035,864

4,027,997

Total

$ (602,768)

(9,877,679)

( 1,202,999)

(1,510,441)

(672,637)

(1,185,272)

(l,455,222)

(16,507,018)

25,154

(1,469)

23,685

( 16,483,333)

9,246,523

1,288,175

953,403

1,025, 104

720,569

247,386

184,995 1,173,50 I

7,285

680,196

15,527,137

(956,196)

75,245,084

$ 74,288,888

MIDDLETOWN TOWNSHIP

BALANCESHEET-GOVERNMENTALFUNDS

December 31, 2010

Investment Debt Service ASSETS General Fund Fund Fund

Cash and cash equivalents $ 2,723,809 $ 43,156 $ 388,697 Investments 41,749,032 Taxes receivable, net of allowance of $2,905 103,413 70,386 Special assessment receivable, net of allowance of $1 ,609 78,835 Accounts receivable 202,957 268,099 A 1I0wance for doubtful accounts ( 40,349) ( 135,837) Revenue receivable 123,187 Advances to other funds

Due from other funds 347,668 20,341 TOTAL ASSETS $ 3,539,520 $ 41,924,450 $ 479,424

LlA BILITIES

Accounts payable $ 662,704 $ $ 5,069 Accrued salaries and benefits 274,444 Deferred revenue 220,356 14,250 70,3 86 Deposits and refunds 56,630 55,124 Due to other funds 216,717 Due to other governments 11,580 65,477

A dvances from other funds 31,295 Other liabilities

TOTAL LIABILITIES 1,473,726 134,851 75,455

FUND BALANCES

Reserve for

Debt service 657,984 403,969

Advances

Transportation impact fee

Unreserved, designated for capital programs 41,131,615

U nrese rved, des ignated for, reported in nonmajor

Special revenue fund

Capital projects fund

Undesignated 2,065,794

Unreserved, undesignated in nonmajor

Special revenue fund

Capital projects fund

TOTAL FUND BALANCES 2,065,794 41,789,599 403,969

TOTAL LIABILITIES AND FUND BALANCES $ 3,539,520 $ 41,924,450 $ 479,424


Other Total

Governmental Governme ntal

Funds Funds $ 7,851,616 $ 11,007,278

41,749,032 61,501 235,300

9,696 88,531 73,031 544,087

(176,186)

123,187 476,426 476,426 247,833 615,842

$ 8,720,103 $ 54,663,497

$ 537,684 $ 1,205,457 44,547 318,991 68,565 373,557

111,754 338,938 555,655

77,057 31,295

4,658 4,658 994,392 2,678,424

1,061,953 476,426 476,426

374,341 374,341 41,131,615

139,240 139,240 5,262,812 5,262,812

2,065,794

1,254,392 1,254,392

218,500 218,500

7,725,711 51,985,073

$ 8,720,103 $ 54,663,497

MIDDLETOWN TOWNSHIP

RECONCILIA TION OF TOTAL GOVERNMENTAL FUNDS BALANCE SHEET TO THE


December 31, 2010

TOTAL GOVERNMENTAL FUNDS BALANCES

Capital assets used in governmental activities are not fmancial

resources and, therefore, are not reported as assets in the governmental

funds. The cost of the assets is $103,933,793 and

the accumulated depreciation is $52,478,688.

Certain property tax revenues will be collected after year end, but are not available soon

enough to pay for current period expenditures and, therefore, are unearned in the funds

Long-term liabilities, including bonds and notes payable, that are not due

and payable in the current period and, therefore, are not reported

as liabilities in the fund. Those liabilities consist of the follow ing:

Accrued interest on bonds

Bonds and notes payable

$ (327,652)

Bond discount, net of issuance costs

Compensated absences

Post retirement employment benefit obligation

TOTAL NET ASSETS OF GOVERNMENTAL ACTIVITIES


(30,228,761 )

306,381

(1,132,213)

(2,147,238)

$ 51,985,073

51,455,105

350,196

(33,529,483)

$ 70,260,891

MIDDLETOWN TOWNSHIP

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

GOVERNMENTAL FUNDS

For the Year Ended December 31,2010

Debt Service

REVENUES: General Investment Fund Fund Taxes

Property 3,747,847 $ 3,128,373 Amusement 1,288,[75 Local services 953,403 Mercantile 1,025,104 Real estate transfer 720,569 Parking transaction 247,386 Per Capita 141,815 Mechanical device 43,180 Liquor license and beverage 7,950

Licenses and permits 1,076,871 Fines and forfeits 172,444 Interest and rents 85,486 630,234 4,686 intergovernmental 819,730 Charges for services 5,835,603 Special assessment

Contributions private sources 37,500 Gain (loss) on investments 404,483 Miscellaneous 879 717

TOTAL REVENUES 16,203,942 1,035,434 3,133,059

EXPENDITURES

Current

General government 1,676,410 39,180 25,706 Public safety 10,022,327 Public works 5,109,942 Parks and recreation

Miscellaneous expense 672,637 Capital outlay/development 249,694 Debt service principal 2,004,214 Debt service interest 1,090,249

TOTAL EXPENDITURES 17,731,010 39,180 3,120,169

EXCESS OF REVENUES OVER (UNDER) EXPEND[TURES (1,527,068) 996,254 12,890

OTHER F[NANC[NG SOURCES (USES)

Bond refinancing proceeds 5,620,000 Bond issuance costs, net of premium (62,561) Payment to refund bonds (5,557,439) Transfers in 2,820,676 Transfers out ( 1,850,000) (32,000) Sale of capital asset 3,477

TOTAL OTHER FINANC[NG SOURCES (USES) 2,824,153 (1,850,000) (32,000)

NET CHANGE IN FUND BALANCES 1,297,085 (853,746) ( 19,110)

FUND BALANCE, BEGINN[NG OF YEAR 768,709 42,643,345 423,079 FUND BALANCE, END OF YEAR 2,065,794 41,789,599 $ 403,969

See accompanying notes to financial statements, 21

Other Total

Governmental Governmental

Funds Funds

$ 2,397,394 $ 9,273,6[4 1,288,175

953,403 1,025,104

720,569 247,386 [41,815

43,180 7,950

[,076,871

55,514 227,958 43,808 764,214

1,549,537 2,369,267 258,196 6,093,799

1,456 1,456 [07,753 145,253

404,483 2,062 3,658

4,4 [5,720 24,788,155

54,7 52 [,796,048

1,073,089 11,095,416 1,294,000 6,403,942 1,614,937 1,614,937

672,637

1,977,271 2,226,965

2,004,214 1,090,249

6,014,049 26,904,408

( 1,598,329) (2,116,253)

5,620,000 (62,561)

(5,557,439) 128,387 2,949,063

( 1,377,483) (3,259,483)

ISO 3,627

(1,248,946) (306,793)

(2,847,275) (2,423,046)

10,572,986 54,408,119 $ 7,725,711 $ 5 [,985,073

MIDDLETOWN TOWNSHIP

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

TO THE STATEMENT OF ACTIVITIES

NET CHANGE IN FUND BALANCES- GOVERNMENTAL FUNDS

Capital outlays are reported in the governmental funds as expenditures.

However, in the statement of activities, the costs of those assets are allocated

over their estimated useful lives as depreciation expense

Capital outlays -Government Funds

Capital outlays - Private Purpose Trust

Depreciation expense

Proceeds of Bond Refinancing Issue

Repayment of bond and note principal is an expenditure in the governmental funds,

but the repayment reduces long-term liabilities in the statement of net assets.

Increase in deferred revenue

Bond discounts and issuance costs are amortized over the lives of the bonds

in the statement of activities, but are recorded as expenditures and other financing

uses in the governmental funds - net

Compensated absences do not require the use of current financial resources and,

therefore, are not reported as expenditures in the governmental funds

On the statement of activities the actual and estimated long-term expenditures

for post-employment benefits are reported, whereas on the governmental funds

only the actual expenditures for post-employment benefits are reported

Interest is reported as an expenditure when due in the governmental funds, but is

accrued on outstanding debt in the statement of activities

CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES


$

$

(2,423,046)

2,226,965

680,196

(2,658,254 )

(5,620,000)

7,471,653

(27,091)

45,806

72,986

(746,269)

28,725

(948,329)

MIDDLETOWN TOWNSHIP

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

BUDGET AND ACTUAL - GENERAL FUND

Year Ended December 3 1, 2010

Original Final

REVENUES Taxes $ 7,800,000 $ 8,039,000 Licenses and pennits 878,650 878,650 Fines and forfeits 190,000 190,000 Interest and rents 59,950 59,950 Intergovernmental revenues 555,410 555,410 Charges for services 5,534,528 5,547,528 Contribution private source 37,500 37,500 Miscellaneous revenue

TOTAL REVENUES 15,056,038 15,308,038

EXPENDITURES ClUTent General government 1,790,740 1,856,740 Public safety 10,219,973 10,393,073 Public works 5,337,923 5,350,923 Miscellaneous expenditures 725,000 725,000 Capital outlay

TOTAL EXPENDITURES 18,073,636 18,325,736

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (3,017,598) (3,017,698)

OTHER FINANCING SOURCES (USES) Sale of capital assets Transfer in 2,820,676 2,820,676 Transfer out

TOTAL OTHER FINANCING SOURCES (USES) 2,820,676 2,820,676

NET INCREASE (DECREASE) IN FUND BALANCE (196,922) (197,022)

FUND BALANCE (DEFICIT), BEGINNING 768,709 768,709

FUND BALANCE (DEFICIT), ENDING $ 571,787 $ 571,687


Variance with Final Budget

Positive Actual Armunts (Negative)

$ 8,175,429 $ 136,429 1,076,871 198,221

172,444 ( 17,556) 85,486 25,536

819,730 264,320 5,835,603 288,075

37,500 879 879

16,203,942 895,904

1,665,181 191,559 10,283,250 109,823 5,109,942 240,981

672,637 52,363

17,731,010 594,726

(1,527,068) 1,490,630

3,477 3,477 2,820,676

2,824,153 3,477

1,297,085 1,494,107

768,709

$ 2,065,794 $ 1,494,107

MIDDLETOWN TOWNSHIP

STATEMENT OF NET ASSETS - PROPRIETARY FUNDS

December 31, 2010

Country Club

Assets Current assets

Cash and cash equivalents $ 105,525 $ Accounts receivable 204,489

Total current assets 310,014

Noncurrent

Land 1,155,000 Land improvements 648,439 Building and building improvements 818,709 Furniture and equipment 691,199 Accumulated depreciation (1,131,830) Other assets 25,000

Total noncurrent assets 2,206,517

Total assets $ 2,516,531 $

Liab ilities Current liabilities

Accounts payable $ $ Deferred revenue 12,250 Due to other funds 269,659 Note payable, current maturity 59,690 Other liabilities 26,105

Total current liabilities 367,704

Noncurrent Note payable, less current maturities 351,525

Total liabilities 719,229

Net Assets Invested in capital assets, net of related debt 1,770,302 Unrestricted net assets (deficit) 27,000

Total net assets 1,797,302

Total liabilities and net assets $ 2,516,531 $


Farm Fund

83,153 14,375

97,528

2,200,000

l37,317

(26,707)

2,310,610

2,408,138

1,974

175,469,

177,443

177,443

2,310,610 (79,915)

2,230,695

2,408,138

Total

$ 188,678 218,864

407,542

3,355,000 648,439 956,026 691,199

(1,158,537) 25,000

4,517,127

$ 4,924,669

$ 1,974 12,250

445,128 59,690 26,105

545,147

351,525

896,672

4,080,912 (52,915)

4,027,997

$ 4,924,669

MIDDLETOWN TOWNSHIP

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN

NET ASSETS - PROPRIET AR Y FUNDS

For the Year Ended December 31, 2010

COLll1try Fann

Club FLll1d Operating revenues

Charges for services Licensing fees $ 147,000 $ 35,000 Rent 4,200

Total Revenue 147,000 39,200

Operating expenses Public works:

Parks and recreation 44,440 32,827 Depreciation 77,406 3,642

Total operating expenses 121,846 36,469

Operating Income 25,154 2,731

Non-operating revenues (expense) Interest income 387 217 Interest expense (16,993)

Total non- operating revenues (expense) (16,606) 217

Income before transfers

Transfers out

Change in net assets

Net assets, beginning of year

Net assets, end of year

8,548 2,948

(6,674) (12,689)

1,874 (9,741)

1,795,428 2,240,436

$ 1,797,302 $ 2,230,695


$

$

Total

182,000 4,200

186,200

77,267 81,048

158,315

27,885

604 (16,993) (16,389)

11,496

(19,363)

(7,867)

4,035,864

4,027,997

MIDDLETOWN TOWNSHIP

STATEMENT+ OF CASH FLOWS - PROPRIETARY FUNDS


Country Club

Cash flows from operating activities Receipts fi'om customers $ 191,441 $

Payments to suppliers 44,440 Net cash provided by operating activities 147,001

Cash flows from noncapital financing activities Payments to interfund advance 60,810 Transters to other fimds 6,674

Net cash provided by (used in) noncapital financing activities 67,484

Cash flows fi'om capital and related financing activities Purchase of capital assets Principal paid on long-tenn debt 56,221 Interest paid on note payable 16,993

Net cash provided by capital and related financing activities 73,214

Cash flows fi'om investing activities Earnings on investments 387

Net increase in cash and cash equivalents 6,690

Cash and cash equivalents, beginning of year 98,835

Cash and cash equivalents, end of year $ 105,525 $

Reconciliation of operating income to net cash provided by operating activities Operating income $ 25,154 $ Adjustments to reconcile operating income to net cash provided

by operating activities Depreciation 77,406 I ncrease in assets

Accounts receivable 44,441 Accounts payable

Net cash provided by operating activities $ 147,001 $


Fann Fund

45,488 31,344 14,144

(26,104) 12,689

(13,415)

217

27,776

55,377

83,153

2,731

3,642

6,288 1,483

14,144

Total

$ 236,929 75,784

161,145

34,706 19,363 54,069

56,221 16,993 73,214

604

34,466

154,212

$ 188,678

$ 27,885

81,048

50,729 1,483

$ 161,145

MIDDLETOWN TOWNSHIP

STATEMENT OF NET ASSETS - FIDUCIARY FUNDS

December 31, 2010

Pension Trust Private Purpose Foods Trust

Assets Cash and cash equivalents $ 1,296,211 $ 282,309 Interest receivable 39,866 Revenue receivable 164,891 Pension plan investments

U.S. government obligations 4,630,338 Corporate obligations [,636,325 Municipalob[igations 1,553,828 Foreign obligations 243,043 Government sponsored obligations 3,548,944 Stock equities 14,033,907

Total assets $ 26,982,462 $ 447,200

Liabilities Accooots payable $ $ Deposits and refunds Due to other funds 109,786 Other liabilities

Total liabilities 109,786

Net assets held in trust for pension benefits and other pw-poses 26,982,462 337,414

Total liabilities and net assets $ 26,982,462 $ 447,200


Agency Food

$ 1,761,665

$ 1,761,665

$ 84,216 1,320,178

357,271

1,761,665

$ 1,761,665

Post Retirement

Health Benefit Food

$ 189,904

48,933

$ 238,837

$

102

102

238,735 $ 238,837

MIDDLETOWN TOWNSHIP

STATEMENT OF CHANGES IN NET ASSETS - FIDUCIARY FUNDS

F or the Year Ended December 31, 2010

Pension Trust Private Purpose Funds

Additions Contributions

Employee contributions $ 367,251 $ Township contributions 842,601 Insurance proceeds 86,112

Total contributions 1,295,964

Investment income Interest and dividend income 791,131 Net appreciation in fuir value ofinvestments 989,033

Total investment income 1,780,164 Less: investment expenses

Net investment income 1,780,164

Total Additions 3,076,128

Deductions Benefits 2,223,754 Administrative expenses 275,417 PlU'chase of equipment

Total Deductions 2,499,171

Excess (deficiency) of additions over deductions 576,957

Transfers out

Change in net assets

Net assets, beginning of year

Net assets, end of year

576,957

26,405,505

$ 26,982,462 $


Funds

329,783

329,783

1,158

1,158

1,158

330,941

680,196

680,196

(349,255)

(349,255)

686,669

337,414

Post Retirement Health Benefit

Funds

$ 48,933

48,933

367

367

367

49,300

49,300

49,300

189,435

$ 238,735

MIDDLETOWN TOWNSHIP

NOTES TO FINANCIAL STATEMENTS


A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Entity Middletown Township, County of Bucks, Commonwealth of Pennsylvania, (the "Township") was founded in 1692. The Township is a second class township and is governed by an elected board of five supervisors and a board-appointed Township Manager. Middletown covers approximately 19.016 square miles in Lower Bucks County and has a population of 44,141, per the 2000 U.S. Census.

Middletown Township provides a full range of municipal services. These services include police protection, fire protection, park and recreation activities, highway maintenance and reconstruction operations, solid waste collection, and general administrative services.

The major accounting principles and practices followed by the Township are presented to assist the reader in understanding the financial statements and accompanying notes to financial statements. The accounting principles and practices and format of the financial statements are presented in conformity with accounting principles generally accepted in the United States, as applicable to governmental units.

Basis of Presentation - Fund Accounting and Measurement Focus The accounts of the Township are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The Township has no component units; therefore, none are disclosed. The following is a description of the fund types used by the Township in the accompanying basic financial statements.

Governmental Fund Types Governmental Funds are those through which the majority of governmental functions of the Township are financed. The acquisition, use and balances of the expendable financial resources and the related liabilities (except those accounted for in the Proprietary Funds) are accounted for through Governmental Funds. The following are the Township's Governmental Fund Types:

General Fund - The General Fund is the principal fund of the Township, which accounts for all financial transactions except those required to be accounted for in other funds. This fund is reported as a major fund.

Special Revenue Funds - These funds account for revenues derived from real estate taxes or other specific revenue sources, including state liquid fuels tax, federal and state grants, program fees and assessments that are legally restricted to expenditures for specific purposes. The fund category is classified as other funds in the balance sheet of governmental funds as it does not meet the major fund percentage criteria. Funds included in this fund category are:

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MIDDLETOWN TOWNSHIP


A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Governmental Fund Types (Continued)

State Highway Aid Fund Parks and Recreation Fund General Street Lighting Fund Ambulance and Rescue Squad Fund

Fire Hydrant Fund Fire Protection Fund Road Machinery Fund

Debt Service Fund - This fund is used to account for the accumulation of resources for, and the payment of principal and interest on certain long-term and short-term debt. The principal source of revenue is real estate taxes. This fund is reported as a major fund.

Capital Projects Funds - These funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds). Funds reported as major funds in this category are the Investment Fund and Capital Projects 2010 Bond Fund. The remaining funds are classified as non-major funds in the balance sheet of governmental funds. Funds included in this category are:

Capital Projects - 1997 Bond Issue Capital Projects - 2006 Bond Issue Capital Projects - 2008 Bond Issue Community Development Fund

Proprietary Fund Types

Capital Reserve Fund Curb/Road Revolving Fund Contingency Fund

Enterprise Funds - These funds are used to account for operations: (a) that are financed and operated in a manner similar to private business where the intent of the governing body is that the cost of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, long-term debt obligation, management control, accountability or other purposes.

Fiduciary Funds Trust and Agency Funds - are used to account for assets held by the Township in a trustee or agent capacity for individuals, private organizations, other governments and/or other funds.

Pension Trust Funds - These funds are used to account for resources required to be held in trust for the members and beneficiaries of the Township's defined benefit pension plans. Funds included in this category are:

30

MIDDLETOWN TOWNSHIP



Fiduciary Funds (Continued)

Non-uniformed Pension Plan Police Pension Plan

Private-Purpose Trust Funds - This fund is used to account for the resources reserved exclusively for the purpose of funding the Township's volunteer fire companies' apparatus replacement plan. The fund included in this category is:

Fire Companies Fund

Agency Funds - This fund is used to account for subdivision/land development, shade tree, water/sewer, and all other types of escrows held by the Township in a custodial capacity. The fund included in this category is:

Township Escrows

Post Retirement Health Benefit Fund - This fund is used to account for resources reserved for OPEB costs.

Government-Wide Financial Statements The government-wide financial statements include the statement of net assets and the statement of activities. These statements report financial information for the Township as a whole excluding fiduciary activities such as the trust and agency funds. Individual funds are not displayed but the statements distinguish governmental activities, generally supported by taxes and Township general revenues, from business-type activities, generally financed in whole or in part with fees charged for services.

The statement of activities reports the expenses of a given function offset by program revenues directly connected with the functional program. A function is an assembly of similar activities and may include portions of a fund or summarize more than one fund to capture the expenses and program revenues associated with a distinct functional activity. Program revenues include: (1) charges for services which report fees and other charges to users of the Township'S services; (2) operating grants and contributions which finance annual operating activities; and (3) capital grants and contributions which fund the acquisition, construction, or rehabilitation of capital assets. These revenues are subject to externally imposed restrictions to these program uses. Taxes and other revenue sources not properly included with program revenues are reported as general revenues.

31

MIDDLETOWN TOWNSHIP



Fund Financial Statements Fund financial statements are provided for governmental funds. Major individual governmental funds are reported in separate columns with composite columns for non-major funds.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation The financial statements of the Township are prepared in accordance with accounting principles generally accepted in the United States of America. The Township's reporting entity applies all relevant Governmental Accounting Standards Board ("GASB") pronouncements. The government-wide and proprietary fund financial statements apply Financial Accounting Standards Board pronouncements and Accounting Principles Board opinions issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements, in which case, GASB prevails.

The government-wide statements report using the economic resources measurement focus and the accrual basis of accounting generally including the reclassification or elimination of internal activity (between or within funds). Proprietary and fiduciary fund financial statements also report using the same focus and basis of accOl.mting although internal activity is not eliminated in these statements and any agency funds reported have no measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property tax revenues, net of any uncollectible amounts, are recognized in the year for which they are levied while grants are recognized when grantor eligibility requirements are met.

Governmental fund financial statements reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to pay current liabilities. The Township considers revenues to be available if they are collected within 60 days of the end of the fiscal year. Property taxes levied but collected beyond 60 days after year-end are recorded as deferred revenue to be recognized as revenue when the taxes are collected. Expenditures are recorded when the related fund liability is incurred, except for debt principal and interest which are reported as expenditures in the year made.

Major revenue sources susceptible to accrual include: property taxes, interest earnings, special assessments, levies, intergovernmental revenues and charges for services. In general, other revenues are recognized when cash is received. In applying the susceptible to accrual concept to intergovernmental revenues, there are essentially two types of revenues. In one, monies must be expended for the specific purpose or project before any amounts will be paid to the Township; therefore, revenues are recognized based upon the expenditures incurred. In the other, monies are virtually unrestricted and are usually revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if the susceptible to accrual criteria are met.

32

MIDDLETOWN TOWNSHIP



Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Operating income reported in proprietary fund financial statements includes revenues and expenses related to the primary, continuing operations of the fund. Principal operating revenues for proprietary funds are charges for services. Principal operating expenses are the costs of providing goods or services and include administrative expenses and depreciation of capital assets. Other revenues and expenses are classified as non-operating in the financial statements.

When both restricted and unrestricted resources are available for use, it is the Township's policy to use restricted resources first, then unrestricted resources as needed.

The Governmental Accounting Standards Board ("GASB") is the accepted standards-setting body for establishing government accounting and financial reporting principles. GASB's Codification of Governmental Accounting and Financial Reporting Standards recognizes three fund categories and two account groups as appropriate for the accounting and reporting of the financial position and results of operations in accordance with generally accepted accounting principles. The Township has adopted these disclosures.

Budgetary Accounting Controls In accordance with provisions of Public Law of the Commonwealth of Pennsylvania, commonly known as the Second Class Township Code, the Township prepares and adopts a budget on or before December 31 for the following calendar year. The Code requires that budgets be legally adopted for the General Fund, Special Revenue Funds, Debt Service Fund and Capital Projects Funds. The Township maintains legal budgetary control by the broad categories of revenue and expenditures prescribed in a chart of accounts established by the Commonwealth. The legal level of budgetary control is at the department level.

Budgets are adopted on a basis consistent with generally accepted accounting principles. Expenditures cannot legally exceed the appropriations established in the budget. All annual appropriations lapse at year-end and must be re-appropriated. In accordance with state regulations, the Board of Supervisors, by resolution, may make supplemental budgetary appropriations from additional revenues and/or unexpended funds appropriated but not spent in prior years and/or from budget transfers between the broad account categories. During 2010, expenditures did not exceed appropriations in the General Fund. During the year, the Township did not materially amend the budget in such a manner that would require disclosure under GASB codification section 2300.108.

The Township prepares a flexible budget for the Proprietary Funds. The flexible budget does not provide a basis for appropriations but rather serves as an approved plan that can facilitate budgetary control and operational evaluations.

33

MIDDLETOWN TOWNSHIP



Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures expenses during the reporting period. Actual results could differ from those estimates.

Cash Equivalents and Investments The Township considers all highly liquid investments with maturities of 90 days or less from the date of purchase to be cash equivalents. All investments of the Township are stated at cost, which equals fair value.

Receivables Real estate tax receivables are recorded at face (original levy) and do not include penalty and interest. The taxes are recognized when levied to the extent that they are available as current assets. Real estate taxes are levied March 1. An elected tax collector bills and collects all real estate taxes and remits them to the Township. Taxes unpaid in the current year are liened January 15 of the succeeding year. Taxes are paid as follows: two percent (2%) discount, March 1 through April 30; face amount, May 1 through June 30; and a ten percent (10%) penalty thereafter.

Millage rates approved in the 2010 budget:

Mills General Fund 7.0000 Highway Lighting 0.8000 Fire Protection 1.3750 Park and Recreation 1.6200 Ambulance and Rescue 0.3950 Debt Service 6.0000 Fire Hydrant 0.0800 Road Machinery 0.3000

17.5700

Assessment receivables for streetlights and solid waste collection are recognized when billed. The elected tax collector bills all current year assessments for streetlights and solid waste. The collection of all delinquent assessments is the responsibility of the Township. No discounts are given on assessments.

Accounts receivable includes all invoices owed by other governments, individuals and private enterprises for services rendered and/or materials supplied. Revenue is recognized when the invoice is prepared.

34

MIDDLETOWN TOWNSHIP



Capital Assets and Depreciation The Township'S property, plant and equipment with useful lives of more than one year are stated at historical cost and comprehensively reported in the government-wide financial statements. Donated assets are stated at fair value on the date donated. The Township generally capitalizes assets with a cost of $5,000 or more as purchases and construction outlays occur. The costs of normal maintenance and repairs that do not add to the asset value or materially extend useful lives are not capitalized. Capital assets are depreciated using the straight-line method. When capital assets are disposed, the cost and applicable accumulated depreciation are removed from the respective accounts, and the resulting gain or loss is recorded in operations. Estimated useful lives, in years, for depreciable assets are generally as follows:

Land improvements 20 years Buildings and building improvements 50 years Machinery and equipment 5-20 years Infrastructure 15-50 years

Accrued Salaries and Wages Accrued salaries and wages are recorded based on wages earned in the current year, paid in the next year, including related employee benefits.

Long-Term Debt, Deferred Debt Expense and Bond Discounts/Premiums In the government-wide and proprietary financial statements, outstanding debt is reported as liabilities. Bond issuance costs and bond discounts or premiums are capitalized and amortized over the term of the respective bonds.

Compensated Absences It is the Township'S policy to permit employees to accumulate earned but unused vacation and sick pay benefits. A maximum of 50 percent of 55 days of accumulated unpaid sick leave for eligible employees is accrued in the government-wide and proprietary financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

Non-uniformed employees are granted 14 days sick leave per year with an accumulation of unused sick leave of 205 days. With 5 years' service, non-uniformed employees are paid for 50 percent of their accumulated unused sick leave to a maximum of 30 days upon termination, or 55 days upon retirement. All police officers are entitled to 50 days severance pay at retirement with 10 years' service.

The Township is liable to employees in the amount of $1,132,212 for earned vacation, vested sick pay and vested severance pay as of December 31,2010. Amounts due within one year were $87,345. General fund resources are used to liquidate the liability for compensated absences.

Interfund Transfers In connection with its operations, the Township affects a variety of transactions among funds to finance operations. The basic financial statements reflect such transactions as transfers, both in the fund receiving the subsidy as revenue and the fund paying the subsidy as an expenditure.

35

MIDDLETOWN TOWNSHIP



Other Post Employment Benefits ("OPEB") Other than Pensions The Township provides post employment benefits other than pensions for police officers. A liability for the amount is reported in the government-wide financial statements based on an actuarial valuation.

Subsequent Events Management has evaluated subsequent events that occurred after the balance sheet date but before June 24, 2011, the date the financial statements were available to be issued. No items were determined by management that requires disclosure.

B. DEPOSITS AND INVESTMENTS

The Township has several checking accounts. However, most checks are disbursed from two concentration accounts. Although the monies from several funds are combined in each concentration account, separate records are maintained for cash balances to show the portion of the concentration account belonging to each fund.

Under Section 3204(d) of the Second Class Township Code of the Commonwealth of Pennsylvania, the Township is authorized to invest its funds in the following:

III United States Treasury bills. III Short-term obligations of the United States Government or its agenCIes or

instrumentalities. Section 3204(d) (2). III Deposits in savings accounts or time deposits, other than certificates of deposit, or share

accounts of institutions insured by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund, the Pennsylvania Deposit Insurance Corporation or the Pennsylvania Savings Association Insurance Corporation, or their successor agencies, to the extent that the accounts are so insured and, for any amounts above the insured maximum, if approved, collateral therefore, is pledged by the depository. Section 3204(d)(3).

III Obligations of the United States of America or any of its agencies or instrumentalities backed by the full faith and credit of the United States of America, of the Commonwealth of Pennsylvania or any of its agencies or instrumentalities backed by the full faith and credit of the Commonwealth, or of any political subdivision of the Commonwealth or any of its agencies or instrumentalities backed by the full faith and credit of the political subdivision. Section 3204(d)(4).

III Shares of an investment company registered under the Investment Company Act of 1940, whose shares are registered under the Securities Act of 1933, provided that the only investments of that company are in authorized investments for Township funds listed above. Section 3204(d)(5).

III Certificates of deposit purchased from institutions insured by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund, the Pennsylvania Deposit Insurance Corporation, the Pennsylvania Savings Association Insurance Corporation or their successor agencies to the extent that such accounts are so insured; however, for any amounts above the insured maximum, such certificates of deposit shall be collateralized by a pledge or assignment of assets of the institution, and such collateral may include loans (including interest in pools of loans) secured by first mortgage liens on

36

MIDDLETOWN TOWNSHIP


B. DEPOSITS AND INVESTMENTS (CONTINUED)

real property. Certificates of deposit purchased from commercial banks shall be limited to an amount equal to twenty percent of a bank's total capital and surplus. Certificates of deposit purchased from savings and loan associations or savings banks shall be limited to an amount equal to twenty percent of an institution's assets minus liabilities. Section 3204(d)(6).

It Any investments authorized by 20 Pa.C.S. Ch.73 (relating to fiduciaries investments) are authorized investments for pension and retirement funds. Section 3204(d)(7). The board of supervisors may permit assets pledged as collateral under Subsection (d)(3) relating to deposits in savings accounts or time deposits, to be pooled in accordance with the Act of August 6,1971 (P.L. 281, No. 72).

Custodial Credit Risk-Deposits - is the risk that in the event of a bank failure, the Township's deposits may not be returned to it. The Township does not have a deposit policy for custodial credit risk. For disclosure purposes, deposits include checking, savings, demand and time deposits, and money market accounts at financial institutions. As of December 31, 2010, $5,897,330 of the Township's bank balance of $5,898,990 was exposed to custodial credit risk because it was uninsured and collateralized with securities held by the pledging financial institution's trust department or agent, but not in the government's name.

As of December 31, 2010, the Township had the following investments (not including fiduciary funds):

Government- Wide Investments:

Pennsylvania Local Government Investment Trust (PLGIT) PA Treasury Invest Community Pool U.S. Government Obligations (Bonds, Notes, Treasury Bills) Certificates of Deposit Money Market Funds

Fiduciary Investments:

u.S. Government Obligations (Bonds, Notes, Treasury Bills) Corporate Obligations Municipal Obligations Foreign Obligations Government Sponsored Obligations Stock Equities

Fair Value

$ 2,488,266 2,348,825

29,752,813 7,004,469

154,660 $ 41,749,033

Fair Value

$ 4,630,338 1,636,325 1,553,828

243,043 3,548,944

14,033,907 $ 25,646,385

Custodial Credit Risk-Investments - For an investment, this is the risk that, in the event of the failure of the counterparty, the Township will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Township has no investments subject to custodial credit risk.

37

MIDDLETOWN TOWNSHIP


B. DEPOSITS AND INVESTMENTS (CONTINUED)

Credit Risk - is the risk that an issuer or counterparty to an investment will not fulfill its obligations. The Township complies with the provisions of the Pennsylvania Second Class Township Code, 53 P.S. 68204 related to the types of investments permitted for Township funds. Also, the Township pre-qualifies the financial institutions, brokers/dealers, intermediaries and advisors with which the Township does business with related to investment decisions. The investment portfolio is diversified so that potential losses on individual securities will be minimized.

Investment

P A local Government Investment Trust

PA Treasury

FHLMC FHLB FNMA

Standard and POofS

AAA

AAA

Not applicable

Not applicable

Not applicable

Concentration of Credit Risk - is the concentration of investments in anyone single user of debt securities presents a greater risk for loss in the event the issuer fails on its obligations. The Township's policy is to diversify the investment portfolio by security type and institution. No more than 50% of the Township's total investment portfolio managed by one investment manager will be invested in a single security type or with a single financial institution with the exception of US. Treasury Securities and authorized pools. At December 31, 2010, the Township did not have any singular investment that exceeded 5% of the total investments.

Interest Rate Risk - is the risk that changes in interest rates will adversely affect an investment's value. In accordance with its investment policy, the Township invests operating funds primarily in short-term securities, money market mutual funds or similar investments. Also, the Township structures its investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity. As of December 31, 2010, the Township's investments had the following weighted average maturities:

Investment u.s. Government Obligations Corporate Obligations Foreign Obligation Municipal Obligation Government Sponsored Mortgages

Fair Value $ 34,383,151

1,636,325 243,043

1,553,828 3,548,944

Maturity (Years) l.68 0.77 2.00 2.12 l.91

A portion of the Township's funds are invested in the Pennsylvania Local Government Investment Trust ("PLGIT"). Although not registered with the Securities and Exchange Commission and not subject to regulatory oversight, PLGIT acts like a money market mutual fund in that its objective is to maintain a stable net asset value of $1 per share, is rated AAA by a nationally recognized statistical rating organization, and is subject to an independent annual audit.

38

MIDDLETOWN TOWNSHIP


C. CAPITAL ASSETS Balance Balance

Classification 01101110 Additions Deletions 12/31110 Government activities Capital asses, not being depreciated

Land $ 7,305,253 $ $ $ 7,305,253

Capital assets being depreciated Land improvements 4,280,951 940,059 5,221,010 Building and building improvements 18,753,745 371,754 19,125,499 Machinery and equipment 8,129,079 974,212 (198,346) 8,904,945 Infrastructure 62,755,950 621,136 63,377,086

Total capital assets being depreciated, at historic cost 93,919,725 2,907,161 (198,346) 96,628,540

Less accumulated depreciation Land improvements 1,899,701 242,747 2,142,448 Building and building improvements 3,171,194 377,536 3,548,730 Machinery and equipment 5,247,583 582,750 (198,346) 5,631,987 Infrastructure 39,700,302 1,455,221 41,155,523

Total accumulated depreciation 50,018,780 2,658,254 (198,346) 52,478,688

Total capital assets being depreciated, net 43,900,945 248,907 44,149,852

Government activities, net $ 51,206,198 $ 248,907 $ $ 51,455,105

Classification Business type activities

Land $ 3,355,000 $ $ $ 3,355,000

Capital assets being depreciated Land improvements 648,439 648,439 Building and building improvements 956,026 956,026 Furniture and equipment 691,199 691,199

Total capital assets being depreciated, at historic cost 2,295,664 2,295,664

Less accumulated depreciation Land improvements 295,836 32,422 328,258 Building and building improvements 273,055 20,016 293,071 Furniture and equipment 508,598 28,610 537,208

Total accumulated depreciation 1,077,489 81,048 1,158,537

Total capital assets being depreciated, net 1,218,175 (81,048) 1,137,127

Business type activities, net $ 4,573,175 $ (81,048) $ $ 4,492,127

Depreciation expense was charged as direct expense to programs of the government as follows:

General government $ 221,059 Public safety 470,674 Public works 305,322 Parks and recreation 205,977

1,203,032 Unallocated expense 1,455,222

$ 2,658,254

39

MIDDLETOWN TOWNSHIP


D. BOND AND OTHER LONG-TERM DEBT

General Obligation Bonds, Series 2010 In June of2010, Middletown Township issued General Obligation ("G.O.") bonds in the amount of $5,620,000 to currently refund the Township's G.O. bonds, Series 1998 and Series 2005 and to pay the costs of issuing the bonds.

The bonded debt is comprised of serially numbered bonds. Interest is payable April 15 and October 15 until maturity. Interest rates range from 2.00% to 2.625%.

Interest of$41,700 and principal of$645,000 were paid in 2010.

Principal and interest payments will be made until maturity in 2017 as follows:

Year of Maturity Principal 2011 $ 885,000 2012 895,000 2013 920,000 2014 615,000 2015 625,000

2016-2017 1,035,000 $ 4,975,000

General Obligation Bonds, Series 2009

Interest $ 104,381

86,681 68,781 50,381 38,081 36,081

$ 384,386

Total $ 989,381

981,681 988,781 665,381 663,081

1,071,081 $ 5,359,386

In June of 2009, Middletown Township issued G.O. bonds in the amount of $7,830,000 to currently refund the Township's G.O. bonds, Series 2004 and to pay the costs of issuing the bonds.

The bonded debt is comprised of serially numbered bonds. Interest is payable April 15 and October 15 until maturity. Interest rates range from 2.00% to 3.750%.



Year of Maturity PrinciEal 2011 $ 610,000 2012 625,000 2013 640,000 2014 655,000 2015 675,000

2016-2020 3,715,000 $ 6,920,000

40

Interest $ 215,393

200,142 184,518 168,517 152,470 398,795

$ 1,319,835

Total $ 825,393

825,142 824,518 823,517 827,470

4,113,795 $ 8,239,835

MIDDLETOWN TOWNSHIP


D. BOND AND OTHER LONG-TERM DEBT (CONTINUED)

General Obligation Bonds, Series 2008 In April of 2008, Middletown Township issued G.O. bonds in the amount of $10,000,000 to pay for the costs of certain capital projects including the reconstructing, repairing and curb improvements in Levittown, improvements to the community center building, improvements to the country club, reconstruction of Beachwood Park, and Simmons Memorial Park.

The bonded debt is comprised of serially numbered bonds. Interest is payable February 15 and August 15 until maturity. Interest rates range from 3.35% to 4.25%.



Year of Maturity PrinciEal Interest Total

2011 $ 365,000 $ 354,725 $ 719,725

2012 375,000 345,782 720,782

2013 385,000 335,658 720,658

2014 395,000 324,685 719,685

2015 405,000 312,637 717,637

2016-2020 2,255,000 1,341,698 3,596,698

2021-2025 2,720,000 876,548 3,596,548

2026-2029 2,595,000 273,790 2,868,790

$ 9,495,000 $ 4,165,523 $ 13,660,523

General Obligation Bonds, Series 2006 In March of 2006, Middletown Township issued G.O. bonds in the amount of $10,000,000 to pay for the costs of certain capital projects including the construction, furnishing and equipping of a community center building, an emergency services station and a public works building, and the reconstruction and renovation of certain roads and highways.

The bonded debt is comprised of serially numbered bonds. Interest is payable February 15 and August 15 until maturity. Interest rates range from 3.35% to 4.25%.



Year of Maturity PrinciQal Interest Total 2011 $ 395,000 $ 340,828 $ 735,828 2012 410,000 326,805 736,805 2013 425,000 311,942 736,942 2014 440,000 296,218 736,218 2015 460,000 279,717 739,717

2016-2020 2,575,000 1,118,038 3,693,038 2021-2025 3,130,000 554,400 3,684,400

2026 705,000 29,963 734,963 $ 8,540,000 $ 3,257,911 $ 11,797,911

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MIDDLETOWN TOWNSHIP



Defeased Debt The Township has prior series bonds which are considered to be defeased, since all future debt service payments on these bonds will be paid from an irrevocable trust by an escrow agent. The trust invests exclusively in government securities. At December 31, 2010, the principal amount of the bonds outstanding but considered defeased totaled approximately $1,920,189. Accordingly, such defeased obligations do not appear as liabilities on the balance sheet as of December 31, 2010.

Penn Vest Loan The Township borrowed funds from the Pennsylvania Infrastructure Investment Authority in order to finance the construction of a storm water system. Loan proceeds, limited to $674,475, are payable in monthly installments including interest at 2.842% per annum for the first 75 months (including the 15 month construction period) and 3.552% per month for the remaining loan term. The loan is payable over twenty years.

During 2010, interest in the amount of $11 ,078 and principal payments of $24,214 were made.

Year of Maturity Princieal

2011 $ 25,088 2012 25,995 2013 26,933 2014 27,905 2015 28,913

2016-2020 160,995 2021 2,932

$ 298,761

Middletown County Club Note

Interest

$ 10,207 9,300 8,362 7,390 6,382

15,478 9

$ 57,128

Total

$ 35,295 35,295 35,295 35,295 35,295

176,473 2,941

$ 355,889

As of December 31, 2010, the outstanding principal balance of the note payable for the purchase of the Middletown Country Club was $411,214. The note is payable in monthly installments based on a thirty-year amortization schedule through November 2017, with interest accruing at a variable rate. The principal payment in 2010 was $52,955. A schedule of the Township's debt service requirements is as follows:

Year of Maturity

2011 2012 2013 2014 2015

2016-2017

42

Principal

$ 59,690 63,371 67,279 71,427 75,833 73,614

$ 411,214

MIDDLETOWN TOWNSHIP



Long-Term Liabilities Summary The following is a summary of the Township's long-term liabilities:

Amounts Balance Balance Due Within

12/31/2009 Additions Reductions 12/31/2010 One Year Government activities G.O. Bonds 2010 $ $ 5,620,000 $ 645,000 $ 4,975,000 $ 885,000 G.O. Bonds 2009 7,515,000 595,000 6,920,000 610,000 G.O. Bonds 2008 9,850,000 355,000 9,495,000 365,000 G.O. Bonds 2006 8,925,000 385,000 8,540,000 395,000 G.O. Bonds 2005 5,060,000 5,060,000 G.O. Bonds 1998 470,000 470,000 Penn Vest Loan 322,975 24,214 298,761 25,088 Total bonds and notes 32,142,975 5,620,000 7,534,214 30,228,761 2,280,088

Compensated absences 1,205,199 72,987 1,132,212 87,345

Other post employment benefits 1,400,969 795,202 48,933 2,147,238

Total governmental activities $ 34,749,143 $ 6,415,202 $ 7,656,134 $ 33,508,211 $ 2,367,433

Business type activities Middletown County Club Note $ 467,435 $ $ 56,221 $ 411,214 $ 59,690

Annual debt service requirements to maturity for bonds, loans and notes outstanding are as follows: Year of Maturity Principal Interest Total

2011 $ 2,339,778 $ 1,025,534 $ 3,365,312 2012 2,394,366 968,710 3,363,076 2013 2,464,212 909,261 3,373,473 2014 2,204,332 847,191 3,051,523 2015 2,269,746 789,287 3,059,033

2016-2020 9,814,609 2,910,090 12,724,699 2021-2025 5,852,932 1,430,957 7,283,889 2026-2029 3,300,000 303,753 3,603,753

$ 30,639,975 $ 9,184,783 $ 39,824,758

E. MIDDLETOWN COUNTRY CLUB LEASE AGREEMENT

The Township has entered into a lease agreement on May 24, 2008, with an independent management company, Agro Golf Corporation, to operate the property which is known as the Middletown Country Club through December 31, 2023. The terms of the agreement state that the Township receives 2% of total gross receipts over $1,500,000 but not to exceed $3,000,000 and 4% of total gross receipts over $3,000,000. The Township maintains a fund that records the general fixed assets acquired at the time of purchase, the general long-term debt obligation for the purchase, the debt service payments and the revenues generated from the lease agreement. Revenue generated from this lease has been designated to repay the obligations financed. The management company is solely responsible for the day-to-day operations of the Country Club and exclusively responsible for administration of its fiscal affairs.

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MIDDLETOWN TOWNSHIP


F. EMPLOYEE RETIREMENT SYSTEM

Plan Descriptions:

Police Pension Plan All of the Township's full-time police officers participate in the Police Pension Plan, a singleemployer, defined benefit pension plan. Township Ordinance 80-1 established the plan on January 15,1980. The plan has been subsequently amended by ordinances 86-49, 88-15,91-24,96-02 and 03-06. The fund was originally established pursuant to the Act of May 29, 1956, P.L. 1804, as amended. The plan is administered by three entities: Bank of New York- Mellon Bank - Trustee; Stifel Nicolaus - Investment Advisors; and Tocqueville Asset Management L.P. - Broker. All three share ninety-two basis points of the value of the plan each year for their fees.

All full-time members of the police force are required to join the Police Pension Plan upon employment. Benefits vest after 12 years of service. Police employees who retire at or after age 50 with 25 years of service are entitled to a retirement benefit, payable monthly for life, in an amount equal to 50 percent of their average monthly pay during their last 36 months of employment, plus a service increment benefit of $600 per year for each full year of service in excess of 25 years. Benefits are also subject to annual cost of living increases until the original benefit has increased by a maximum of 25% effective January 1, 2004. The plan also provides death, disability, survivor and late retirement benefits. The Commonwealth of Pennsylvania Acts governing the pension plan are the "Municipal Pension Plan Funding Standard and Recovery Act" of December 18, 1984, P.L. 1005, No. 205, and the "Municipal Police Pension Law Act" of May 29,1956, P.L. 1804, No. 600, as amended (commonly known as "Act 600").

Effective January 1, 2003, a Deferred Retirement Option Plan ("DROP") is available to the Township's police officers who have fulfilled the age and service requirements of the Police Pension Plan as described in the above paragraph. Under the DROP program a participant may elect to defer receipt of normal retirement benefits while continuing employment with the Township up to a maximum of96 months.

Police officers are required to contribute five and three-quarters percent of their annual salary to the plan. The balance of the plan's funding requirements are met by state aid and, if necessary, by Township contributions. The obligation of the officers and the Township to contribute to the Police Pension Plan is established by state law.

Nonuniformed Pension Plan All Township full-time nonuniforrned employees are required to join the Nonuniforrned Pension Plan, a single-employer, cash balance, defined benefit pension plan, after their special review period. Township Ordinance 88-1 established the current plan on January 26,1998. Ordinances 91-8 and 91-34 have subsequentlyarnended the plan. The Bank of New York- Mellon Bank - Trustee; Stifel Nicolaus - Investment Advisors; and Tocqueville Asset Management L.P. - Broker, administer the plan. All three share ninety-two basis points of the value of the plan each year for their fees. Employee benefits vest after 5 years of service. Employees who retire at or after age 62 and the completion of 30 years of service, or at or after age 65 and the completion of 5 years of service, whichever is earlier, are entitled to receive their total account balance under the plan in a lump-sum payment.

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MIDDLETOWN TOWNSHIP


F. EMPLOYEE RETIREMENT SYSTEM (CONTINUED)

Alternatively, employees may elect to receive a monthly annuity that is actuarially equivalent to the lump-sum payment. Effective January 1, 2003, employees contribute five percent of annual base pay to their account each year.

The Township's contribution to the plan is equal to seven percent of each employee's annual base pay per year. This amount is credited to the employee's account. In addition, all contributions and credits are credited with interest at the rate of six percent per annum.

The plan also provides death, disability, and early and late retirement benefits. The plan also provides certain minimum benefit guarantees for participants in the plan prior to its January 1, 1988, amendment. The Plan was amended in 2004 to provide for an Early Retirement Incentive Program. To be eligible, a participant must be age 60 with 20 years of service.

The establishment and operation of a nonuniformed pension plan in the Commonwealth of Pennsylvania is within the discretionary powers of the local governing bodies. However, the plan is affected to some degree by the provisions of the "Municipal Pension Plan Funding Standard and Recovery Act" of December 18, 1984, PL 1005, No. 205, which governs the distribution and use of state pension aid.

As noted, employees are required to contribute five percent of their annual base salary to the plan. The balance of the plan's funding requirements is met by state aid and, if necessary, by Township contributions. The obligation of the employees and Township to contribute to the Non-uniformed Pension Plan is established by state law.

The following summarizes financial information of the police pension plan and non-uniformed pension plan as of and for the year ended December 31, 2010.

Police Pension N on- Uniform Combining Statement of Net Assets Fund Pension Fund Total

Assets Cash and cash equivalents $ 1,077,618 $ 218,593 $ 1,296,211 Interest receivable 34,877 4,989 39,866 Investment, at fuir value

Government obligations 3,906,499 723,839 4,630,338 Corporate obligations 1,377,313 259,013 1,636,325

Municipal obligations 1,299,223 254,605 1,553,828

Stock equities 11,821,165 2,212,743 14,033,907

Foreign obligations 205,236 37,807 243,043

Government sponsored obligations 2,981,336 567,607 3,548,944

Total Assets 22,703,267 4,279,195 26,982,462

Net assets held in trust for pension benefits and other programs $ 22,703,267 $ 4,279,195 $ 26,982,462

45

F.

MIDDLETOWN TOWNSHIP


EMPLOYEE RETIREMENT SYSTEM (CONTINUED)

Police Pension N on- UnifOim Combining Statement of Changes in Net Assets Food Pension Food Total

Additions Contributions

Employee contributions $ 261,300 $ 105,951 $ 367,251 Township contributions 764,346 78,255 842,601 Insurance proceeds 86,112 86,112

Total contributions 1,111,758 184,206 1,295,964

Investment income Interest and dividend income 667,868 123,263 791,131 Net appreciation in fuir value of investments 845,006 144,027 989,033

Total investment income 1,512,874 267,290 1,780,164

Net investment income 1,512,874 267,290 1,780,164

Total Additions 2,624,632 451,496 (484,200)

Deductions

Benefits 1,990,146 233,610 2,223,756 Administrative expenses 227,031 48,384 275,415

Total Deductions 2,217,177 281,994 2,499,171

Net increase 407,455 169,502 2,014,971

Net assets held in trust tor pension benefits 407,455 169,502 2,014,971

Net assets, beginning of year 22,295,812 4,109,693 26,405,505

Net asset, end of year $ 22,703,267 $ 4,279,195 $ 26,982,462

Since both the Police and Nonuniformed Pension Plans are single-employer, defined benefit plans, the Township reports the same funding information for both plans. The following summary of significant accounting policies and plan assets, fund status and progress and trend information have been combined for both pension plans for ease of reporting.

Summary a/Significant Accounting Policies and Plan Assets The Plan's financial statements are prepared using the accrual basis of accounting. The method used to value assets in the actuarial updates is the fair value method. Both pension plans record their assets at fair value. This results in the net gains and net unrealized gains both being included on the statement of changes in plan net assets in the line net appreciation in fair value of investments. The plans do not issue separate financial statements.

Membership of each plan consists of the following at January 1, 2009 (the date of the latest actuarial valuation):

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MIDDLETOWN TOWNSHIP



Payroll information Payroll for employee covered

by each pension plan

Membership information Retirees and beneficiaries

currently receiving benefits Terminated vested employees

Active employees Fully vested Nonvested

Total active employees

Funding Policy

Police Pension Plan

$ 4,437,594

46

14 32

46

N on uniformed Pension Plan

$ 2,043,051

5 11

36 7

43

Total

$ 6,480,645

51 1 1

50 39

89

The Township's annual required contribution is equal to its mInImUm municipal obligation ("MMO") as calculated in accordance with Pennsylvania law (Act 205 of 1984) less state aid and employee contributions deposited in the pension fund during the year. State law requires that state aid be used first to fund the plan, then employee contributions and finally general Township funds. The Township received state aid, which is recognized as revenue and expenses, in the amount of $425,409 for the pension for the year ended December 31,2010.

Police Total

Township contributions

Employee contributions

$ 764,346

N onuniformed

$ 78,255 105,951

$ 842,601

261,300 367,251

Annual Pension Cost and Net Pension Obligation The two plans' annual pension cost and net pension obligation as of January 1, 2010 (date of latest actuarial valuation), were:

Annual required contribution

Interest on net pension obligation Adjusted to annual required contribution

Annual pension cost

Contributions made Increase in net pension obligation

Net pension obligation beginning of year Net pension obligation end of year

47

Police

$ 764,346

$

764,346

764,346

Nonuniformed

$ 78,255

$

78,255

78,255

MIDDLETOWN TOWNSHIP



Three- Year Trend Information

Police

Nonuniformed

*Net of state aid.

Fiscal Year Ended 12/3112007

12/3112008 12/31/2009 12/3112010

12/3112007 12/31/2008

12/3112009 12/3112010

Funded Status and Funding Progress

Annual Pension Cost (APC)*

$ 255,285 306,873 440,918 409,l32

Percentage of APC

Contributed 100% 100% 100% 100%

100% 100% 100% 100%

Net Pension Obligation

As of January 1, 2009, the latest valuation date, both plans had unfunded actuarial accrued liabilities as follows:

Actuarial accrued liability at 111109 Actuarial value of plan assets as of 111109 Unfunded actuarial accrued liability Funded ratio Ratio of unfunded actuarial accrued liability

Police $ 32,263,479

28,588,615 3,674,864

88.61%

N onuniformed $ 4,413,836

4,365,195 48,641 98.90%

for annual covered payroll 82.80% 2.40% Actuarial Methods and Assumptions A bi-annual actuarial valuation is performed for each plan. As of January 1, 2010, significant actuarial assumptions used in determining pension benefit obligations are: (l) investment return including inflation: 8.0 percent per annum compounded for the Police Plan and 7.5 percent per annum compounded annually for the Non-uniformed Plan; (2) projected salary scale increase: 5.0 percent per annum compounded annually for the Police Plan and 4.5 percent per annum compounded annually for the Nonuniformed Plan; (3) increase in CPI for the Police Plan only, 3.0 percent per annum compounded annually; (4) administrative expenses: $249,233 for the Police Pension Plan and $47,323 for the Non-uniformed Plan; (5) mortality: 1983 group annuity mortality table; (6) actuarial value of assets: the actuarial value of assets as of the last valuation date plus non-investment increases less non-investment decreases since the last valuation date plus interest credited at the last valuation's assumed interest rate assuming noninvestment increases and decreases occur at the mid-point between the last and current valuation date, limited to a maximum of 115% and a minimum of 85% of the fair value of assets as of the current valuation date for the Police Plan and fair value for the Nonuniformed Plan; (7) the Entry Age Normal Actuarial cost period on a closed basis; and (8) the remaining amortization period: over future years, as specified in Act 205, and revised by Act 44 is nineteen years.

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MIDDLETOWN TOWNSHIP



There were no significant changes in actuarial assumptions for either Plan in 2010.

Schedule of Funding Progress The Schedule of Funding Progress, presented as Required Supplementary Information ("RSI") following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets are increasing or decreasing our time relative to the actuarial accrued liability for benefits.

Funded Status The funded status of each plan as of January 1,2010, to most recent valuation date is as follows:

Schedule of Township and State (PA) Contributions

Police Plan Annual Township's

Required State's Annual Required Percentage Year Contribution Contribution Contribution Contributed 2004 $ 531,208 $ 386,732 $ 144,476 100% 2005 580,746 353,877 226,869 100% 2006 591,820 330,083 261,737 100% 2007 605,161 349,876 255,285 100% 2008 660,750 353,877 306,873 100% 2009 785,798 344,880 440,918 100% 2010 764,346 355,214 409,132 100%

Schedule of Township and State (PA) Contributions

Non-Uniformed Pension Plan Annual Township's

Required State's Annual Required Percentage Year Contribution Contribution Contribution Contributed 2004 $ 67,439 $ 67,439 $ 100% 2005 64,651 64,651 100% 2006 93,044 93,044 100% 2007 86,193 86,193 100% 2008 103,038 103,038 100% 2009 80,530 80,530 100% 2010 78,255 78,255 100%

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MIDDLETOWN TOWNSHIP


G. DEFERRED COMPENSATION PLAN

The Township offers all of its employees the option to participate in a Deferred Compensation Plan (the "Plan") created in accordance with the Internal Revenue Code Section 457. The plan permits each employee to defer a flat dollar amount of his or her salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. The Township's responsibility is to administer the plan. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the individuals enrolled in the plan and are not subject to the claims of the Township's general creditors. Participants' rights under the plan are equal to the fair value of the deferred account for each participant.

Investments are managed by the plan trustees ("ICMA") under various investment options. Each participant makes the investment plan choice. The Township's opinion is that it has no liability for losses under the plan but does have the responsibility of due care that would be required of an ordinary prudent investor.

On December 17, 1996, the Township passed Resolution 96-42R effective January 1, 1997. This resolution established the Deferred Compensation Plan as a Trust for the exclusive benefit of the Plan participants and their beneficiaries, and that the assets could not be diverted to any other purpose. This resolution was passed to comply with amendments to the Internal Revenue Code. The activity of the Plan is not recorded in the financial statements.

H. POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS

Plan Description: The Township's post employment benefits other than pensions was established by the provisions of the collective bargaining agreement between the Township and the police officers, to provide continuation of medical and vision insurance for employees who retire from the Middletown Township Police Pension Plan.

The Township provides limited reimbursement for post-retirement health benefits to police officers. All sworn police officers retiring on or after January 1, 1991, who receive retirement benefits by reason of age and service, or a service-connected disability, are eligible for reimbursement by the Township, commencing upon the date of retirement or service-connected disability, and for a maximum period of from five to ten years depending on the employee's accumulated unused sick leave at retirement of an amount from $3,000 to $5,000 per annum upon submission of proof of medical insurance premium expense payments paid by the retired officer.

Funding Policy Contribution requirements are negotiated between the Township and union representatives. The Township contributes 100 percent of the cost of current-year premiums for eligible retired plan members and their spouses. For fiscal year 2010, the Township contributed $48,993 to the plan.

50

MIDDLETOWN TOWNSHIP


H. POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)

Annual OPEB Cost and Net OPEB Obligation The Township's annual other postemployment benefit ("OPEB") cost ( expense) is calculated based on the annual required contribution of the employer ("ARC"). The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the Township's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Township's net OPEB obligation to the Retiree Health Plan:

Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB cost (expense) Contributions made Increase in net OPEB obligation Net OPEB obligation, beginning of year Net OPEB obligation, end of year

$

$

795,202

795,202 48,933

746,269 1,400,969 2,147,238

The Township's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal 2010 and the preceding fiscal years were as follows:

Percentage of Annual Annual 0 PEB Cost NetOPEB

Year OPEB Cost Contributed Obligation 2008 $ 795,202 0% $ 795,202 2009 795,202 18% 654,700 2010 795,202 12% 697,336

Funded Status and Funding Progress As of January 1, 2008, the actuarial accrued liability for benefits was $6,448,201, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $3,437,807, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 187.6 percent.

The projection of future benefit payments for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

51

MIDDLETOWN TOWNSHIP



Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

The following simplifying assumptions were made:

Retirement age for active employees Active plan members were assumed to retire at age 50 or older with 25 years of service.

Marital status Marital status of members at the calculation date was assumed to continue throughout retirement.

Mortality Life expectancies were based on mortality tales from the GA 1983 table, which is based on the mortality of the general population.

Turnover Three percent of members with less than ten years of services are expected to be terminated each year.

Health care cost trend rate Based on the current premium rates, health insurance premiums are assumed to increase by 12%. in 2008, decreasing 1 % per year to an ultimate rate of 6% in 2014 and later years. Vision care premiums are assumed to increase 5% per year.

Payroll growth rate The expected long-term payroll growth rate was assumed to be 5.0% per year.

Based on the historical and expected returns of the Township's short-term investment portfolio, a discount rate of 5.5 percent was used. In addition, a simplified version of the entry age actuarial cost method was used. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at January 1, 2008, was thirty years.

Actuarial assumptions were based on the following:

II Economic assumptions - the discount rate and health care cost trend rates II Benefit assumptions - the initial per capita cost rates for medical and vision coverage II Demographic assumptions - the probabilities of retiring, dying, election (participation rates)

and coverage levels.

52

MIDDLETOWN TOWNSHIP



The actuarial cost method is the way that unfunded plan costs are allocated over the future years, including the current year. The actuarial valuation uses the Entry Age Normal Actuarial Cost Method. Under this method, the normal cost and actuarial accrued liability are determined on an individual basis. The unfunded actuarial accrued liability is determined as the excess of the actuarial accrued liability over the actuarial value of assets. If the actuarial accrued liability exceeds the actuarial value of plan assets, the unfunded actuarial accrued liability is amortized over future years as part of the annual contribution requirement. The amortization amounts are determined based on the source of each piece of the unfunded accrued liability (e.g. actuarial gains and losses, plan amendments, changes in assumptions, etc.) If the actuarial value of assets exceeds the actuarial accrued liability, 10% of this excess is used to reduce the plan's financial requirement.

I. INTERFUND ADVANCES AND TRANSFERS

Interfimd Advances The Township has established a Contingency Fund with monies remaining from the 1978 bond issue. The Contingency Fund pays for capital projects and/or lends money to other Township funds for capital projects/equipment. These monies are loaned in accordance with a Board of Supervisors approved resolution. The resolution includes a payment schedule and a stated interest rate based on market conditions. For monies loaned to Governmental or Capital Projects Funds, the long-term liability is recorded in the fund. Real estate taxes are used for the repayment of the interfund advance.

The loans made to the Curb/Road Revolving Fund for the construction of curb improvements are recorded and repaid by residential assessments. The Township records all advances from the Contingency Fund as advances receivable in the Contingency Fund. Monies loaned from the Contingency Fund to Enterprise funds are recorded as debts payable in the Enterprise Fund. Shortterm interest and principal are paid out of the Enterprise Fund when they become due, except for the loan to the Farm Fund, which is paid through Debt Service.

The liability for these loans is reflected in the fund stated below. The receivables are recorded in the Contingency Fund. The interfund payables outstanding as of December 31, 2010, the annual installment (principal plus interest) and the scheduled maturities are as follows:

Balance Principal Balance Due within

1/112010 Additions Pa:tments 12/31/2010 One :tear Police vehicles 2007 $ 32,818 $ $ 32,818 $ $

Flood 1996 46,132 14,837 31,295 15,371 Total General Fund $ 78,950 $ $ 47,655 $ 31,295 $ 15,371

Total Government Fund Type $ 78,950 $ 31,295 $ 15,371

53

MIDDLETOWN TOWNSHIP


I. INTERFUND ADVANCES AND TRANSFERS (CONTINUED)

The following summary reflects the changes in the interfund loans that are recorded In the Enterprise Funds for the year ended December 31, 2010.

Balance Principal Balance 11112010 Additions Payments 12/3112010

Country Club Fund $ 356,574 $ $ 60,810 $ 295,764 Farm Fund 149,364 149,364 Total General Fund $ 505,938 $ $ 60,810 $ 445,128

The liability for these loans is reflected in the Proprietary Funds. The receivable is recorded in the Contingency Fund. The Country Club loans are recorded in the Middletown Country Club Fund. The interfund payables outstanding as of December 31, 2010, the annual installment (principal plus interest) and the scheduled maturities are as follows:

Original Interest Aruma[ Final Due Outstanding Outstanding AmOLmt Rate Installment Date 12/3112010 12/3112009

General Fund Police vehicles 2007 $ 98,455 0.00% $ 32,818 61112010 $ $ 32,8[8 Flood 1996 300,000 3.60% 14,837 6/3012012 31,295 46,132

31,295 78,950 Capital Projects Flmd

Curb/road 109,370 0.00% Repayment based on assessment

Total interfund payables for Governmental Fund Types $ 31,295 $ 78,950

Proprietary Funds The liability for these loans is reflected in the Enterprise Funds. The receivable is recorded in the Contingency Fund. The Country Club loans are recorded in the Middletown Country Club Fund.

Original Interest Annual Final Due Outstanding Outstanding Amount Rate Installment Date 12/3112010 12/31/2009

Farm Fund $ 214,764 $ $ $ 149,364 $ 149,364 FaIm Fund 34,600 0.00%

149,364 149,364

COLmtry Club Loan 313,550 3.60% 16,368 121112015 91,274 107,644

Cow1try Club Pool Loan 133,208 3.60% 9,000 121112011 7,209 16,208 Country Club Irrigation Loan 500,000 3.60% 35,440 6/112015 197,281 232,722

295,764 356,574

Total interflmd payable Enterprise Flmds $ 445,128 $ 505,938

Total interflmd payable Capital Projects Flmd $ 476,423 $ 584,888

54

MIDDLETOWN TOWNSHIP


I. INTERFUND ADVANCES AND TRANSFERS (CONTINUED)

J.

Interfund Transfers

Transfers are used to move fund revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations, including amounts provided as subsidies or matching funds for various grant programs.

Special General Debt Service Revenue Fiduciary

Fund Fund Fund Fund Total Transfer out: Investment Fund $ 1,721,613 $ $ 128,387 $ $ 1,850,000 Debt Service Fund 32,000 32,000 Contingency Fund 1,000,000 1,000,000 CountlY Club 12,689 12,689 Farm Fund 6,674 6,674 Special Revenue Fund 394,483 394,483 Capital Projects Fund

$ 3,167,459 $ $ 128,387 $ $ 3,295,846

Due From/To Other Funds

Due from other funds: Major funds

General Fund $ 331,957 Debt Service Fund 51,505 Special Revenue Fund 59,219

$ 442,681

Due to other funds: Major funds

General Fund $ 110,724

Other Government Funds 222,171 Private Purpose Trust Fund 109,786

$ 442,681

RISK MANAGEMENT

The Township is exposed to various risks of loss related to third-party liability claims, damage to and loss of Township-owned property, errors and omissions by public officials, and injuries to employees. As a method of protection against the risk, the Township purchases commercial insurance coverage. The amount of settlements did not exceed insurance coverage for the past three years. There have been no significant reductions in insurance coverage during the year ended December 31, 2010.

55

MIDDLETOWN TOWNSHIP


K. LITIGATION

There are various other claims and pending actions against the Township as of December 31, 2010. Based upon a review of these claims with Township solicitors, the aggregate exposure to liability was not considered material.

L. ROUNDING

Some schedules in the financial statements may have dollar differences due to rounding.

56

REQUIRED SUPPLEMENTARY INFORMATION

57

Actuarial Valuation

Date 1/1/2008

MIDDLETOWN TOWNSHIP


SCHEDULE OF FUNDING PROGRESS FOR THE OTHER POST RETIREMENT BENEFITS

Actuarial Accrued

Actuarial Liability Unfimded Value of (AAL) - Aal Covered Assets Entry Age (UAAL) FLmded Ratio Payroll

(a) (b) (b - a) (a / b) (c) $ $ 6,448,201 $ 6,448,201 0.0% $3,437,807

58

UAALasa Percentage of Covered

Payroll ((b - a) / c)b)

187.6%

MIDDLETOWN TOWNSHIP


SCHEDULE OF FUNDING PROGRESS FOR PENSION PLANS

Police Pension Actuarial Accrued UAALas a

Actuarial Liability Unfimded Percentage Actuarial Value of (AAL) - Aal Covered of Covered Valuation Assets Entry Age (UAAL) Funded Ratio Payroll Payroll

Date (a) (b) (b - a) (a I b) (c) «b - a) I c)b) 11112005 $24,751,471 $ 24,407,042 $ (344,429) 101.4% $ 4,042,630 -8.5%

111/2006 25,710,791 24,096,475 (1,614,316) 106.7% 4,006,249 -40.3%

1/1/2007 27,521,027 27,639,909 118,882 99.6% 4,144,680 2.9%

1/1/2008 0.0% 0.0% 1/1/2009 28,588,615 32,263,479 3,674,864 88.6% 4,437,594 82.8%

Non-Uniformed Actuarial Accrued UAALas a

Actuarial Liability Unfimded Percentage

Actuarial Value of (AAL) - Aal Covered of Covered

Valuation Assets Entry Age (UAAL) Funded Ratio Payroll Payroll

Date (a) (b) (b - a) (a I b) (c) «b - a) I c)b)

1/1/2005 $ 3,457,529 $ 3,240,727 $ (216,802) 106.7% $ 1,948,307 -11.1%

1/112006 2,609,254 (2,609,254 ) 0.0% 0.0%

11112007 4,131,207 3,699,551 (431,656) 111.7% 1,977,643 -21.8%

111/2008 4,015,338 (4,015,338) 0.0% 0.0%

1/112009 4,365,195 4,413,836 48,641 98.9% 2,043,051 2.4%

59

MIDDLETOWN TOWNSHIP

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION

Budgetary Accounting Controls In accordance with provisions of Public Law of the Commonwealth of Pennsylvania, commonly known as the Second Class Township Code, the Township prepares and adopts a budget on or before December 31 for the following calendar year. The Code requires that budgets be legally adopted for the General Fund, Special Revenue Funds, Debt Service Fund and Capital Projects Funds. The Township maintains legal budgetary control by the broad categories of revenue and expenditures prescribed in a chart of accounts established by the Commonwealth. The legal level of budgetary control is at the department level.

Budgets are adopted on a basis consistent with generally accepted accounting principles. Expenditures cannot legally exceed the appropriations established in the budget. All annual appropriations lapse at year-end and must be reappropriated. In accordance with state regulations, the Board of Supervisors, by resolution, may make supplemental budgetary appropriations from additional revenues and/or unexpended funds appropriated but not spent in prior years and/or from budget transfers between the broad account categories. During 2010, expenditures did not exceed appropriations in the General Fund. During the year, the Township did not materially amend the budget in such a manner that would require disclosure under GASB codification section 2300.108.

The Township prepares a flexible budget for the Proprietary Funds. The flexible budget does not provide a basis for appropriations but rather serves as an approved plan that can facilitate budgetary control and operational evaluations.

60

MIDDLETOWN TOWNSHIP

NON-MAJOR GOVERNMENTAL FUNDS

Special Revenue Funds

Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes:

General Street Lighting Fund - This fund is used to account for revenue derived from a 0.800 mill real estate tax levy. Major expenditures in the General Street Lighting Fund include the cost of electricity and the maintenance of highway and residential streetlights located within the Township.

Fire Protection Fund - This fund is used to account for revenue derived from a 1.375 mill real estate tax levy in accordance with the current agreement between the Township and the Skyline Fire District Association ("SFDA").

Parks and Recreation Fund - This fund is used to account for revenue derived from a 1.620 mill real estate tax levy. The revenues of this fund are restricted to the maintenance and operation of parks, playgrounds, playing fields, open space, gymnasiums, recreation centers and activities, and associated serVIces.

Ambulance and Rescue Fund - This fund is used to account for revenue derived from a 0.395 mill real estate tax levy for the purpose of supporting the operations and activities of the Penndel-Middletown Rescue Squad.

Road Machinery Fund - This fund is used to account for revenue derived from a 0.300 mill real estate tax levy that provides funding for purchasing road machinery and associated equipment for use by the Middletown Township Department of Public Works.

Fire Hydrant Fund - This fund is used to account for revenue derived from a 0.080 mill real estate tax levy. The revenues of this fund are restricted to expenditures for the maintenance of fire hydrants and water service to fire hydrants throughout the Township.

State Highway Aid Fund - This fund is used to account for the Township's share of the Liquid Fuels Tax Grant disbursed annually by the Commonwealth of Pennsylvania. All monies in this fund are expended in accordance with the rules and regulations established by the Pennsylvania General Assembly and the Pennsylvania Department of Transportation for the construction, reconstruction, and maintenance of all locally-owned roads, streets, and bridges, including traffic line painting and snow removal. In addition, energy and maintenance costs for traffic signals are paid from this fund.

61

MIDDLETOWN TOWNSHIP

NON-MAJOR GOVERNMENTAL FUNDS

Capital Projects Funds

Capital Projects Funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds.

General Obligation Bond Issue of 1997 Fund - This fund is used to account for the construction of improvements to upgrade the Township's stormwater management system, the acquisition, construction, and equipping of a new police building, and the acquisition and improvement of real estate for open space. These capital projects were financed by the issuance of $5,000,000 in G.O. bonds in 1997.

General Obligation Bond Issue of 2006 Fund - This fund is used to account for the costs of planning, design, construction, furnishing, and equipping of an emergency services station and a public works building, and the reconstruction and renovation of certain roads and highways. This fund was established by the issuance of $1 0,000,000 in G.O. bonds in 2006.

General Obligation Bond Issue of 2008 Fund - This fund is used to account for the costs of reconstruction, repairing and curb improvements in Levittown, improvements to the community center building, improvements to the country club, reconstruction of Beachwood Park and Simmons Memorial Park. This fund was established by issuance of $1 0,000,000 in G.O. bonds in 2008.

Community Development Fund - This fund is used to account for certain grant funds awarded to the Township for capital projects.

Capital Reserve Fund - This fund is maintained for anticipated capital expenditures. The monies accumulated in this fund are expended at the discretion of the Board of Supervisors for purposes involving the construction, purchase, lease to own, or replacement of or addition to municipal buildings, equipment, land, recreation facilities, parks, playgrounds, machinery, motor vehicles, infrastructure, or other capital assets or capital improvements. These expenditures are financed by the transportation and recreation impact fees paid by developers, as well as proceeds from the nonresidential building permit privilege tax.

Curb/Road Revolving Fund - This fund is used to account for the costs of permanent street, curb and sidewalk improvements prior to the collection of such costs and expenses by assessments from the property owners adjoining or abutting such improvements.

Contingency Fund - This fund was established to extend interfund advances to fund capital purchases.

62


COMBINING BALANCE SHEET

NON MAJOR GOVERNMENTAL FUNDS

DECEMBER]!. 201!)

------------S2:CI<li Rc\ cnue CaeitalProiccts Tota!

(krcml NOIUII'UOr

Street h, Parks and Ambublx:e Road Slale GOB Issue GOB Issue GOB ISSLIe of COHUliuniL~ Capn.d Curb/Road Go\cnuncll!<ll

~ Protection Rccrcalnll arrlRcsclIc ~ ~ HI/7]ma\" Aid ~ ~ 20()~ Dc\clopnX::1I1~ Rc,"ol\-ing Contingcllc\ Furds

Assets

Cash and cash cqw\"alcl1ls $ 21Jl20 $ 213.85-1. $ 2\}1.651 7620-l :$ 152.757 Vgs 92 .. UIJ (16.925) 1.21:)8 $ 2.701.061 ].268226 , 117.686 98.I'H 7.851.616

Taxes rccer.ablc. net 10.982 18.1;8] 21.972 .. U!60 -1..028 ')76 6L50[

Sp.:cial assessments n::ccinlbJc 9.6% lJ.6%

Accounts rccci\ able. rei 8.556 ],67') ]1 60.765 7.HlJJ

Ad\'lu'Ccs to olher funds -I.76A26 -I76A26

Due frolll oller fWIC\s ~ ~ ~ ~ ~ ~ ~ 170.3 ... 6 ~---- ---- ---- 2-i7.333

Total Assets ~ ~ ~ ~ ~ ~ ~ ~$--~ ~ $ 2.371.-WS ~ $3.268.216 ~ 57-l.610 8.720.103

Ll<lbililcs

Accounts IXlpbc $ 372l)7 21l 15.278 20 $ l«J,1J70 5.(l9-l 3JJl<Xl 316.705 233lXl 537.6~

Accmed sa~Hl;:s and bcnefns 1J~92 16522 25.133 -l-U-l7

Deferred re\'emc 10.979 1!(673 11.972 -l.860 -l.029 l)76 7Jl76 6K.565

Due 10 olier fturls 8.3-l3 Hl6.l)'J-l 1279 3-1..385 70,3-l6 117.:WI 338.938

Ad\'an::es frolll olher flUIds

Otlcrliabilitcs ~ ~ ___ 9_ ~ ---- .. t65K

TOlal LiabiliLcs ~ ~ ~ ~ 90.1)Y') ~ ~ ~ J6IJM) ~~ ~ ---- 99-l.392

Fund Bal<m:es

Reserved for 0\ Ad\':ux::es -l76.-l26 ..j76.-l26 VJ TransponalDIl unpact fcc 37-l..3-l1 .17-lJ..jJ

Ul"U'eser\'ed. designated for. reported in. Cap~al proj.::CIS fund 2510.318 2.752.49..j 5162.K12

Special re\'ellliC fUJrls 139.2-l0 139.2-l0

Unreserved. U1Ucsign<lted ~ 212.555 ~ ~ ~ ~ ~ ----~ 9K19-l 1.-l72.81)2

Tot:~ FWld Ba~lIIccs ~ 222555 ~ ~ ~ ~ ~ 25 10.3 IS 3.126.835 ~ 574.620 7.725.711

Total Ll<lblh\cs and Funds Bal<lIx::es ~ ~ $ 35J.lJ20 ~ ~ ~ ~ ~$--~ ~ 2.S71.-lOS ~~ ~ 57-l.620 8.720.1\13


COMBINING STATEtvlENTOF REVENUES. EXPENDITIJRES AND CHANGES IN FUND BALANCE

NON MAJOR GOVERNMENTAL FUNDS

FOR 1l-l.EYEAR ENDED DECEMBER 31. 2(ljO

S~Cill Rcn:lluc Cl1pl1al Pro~ct~ 1\)lo.ll (kneHlI N<)llJH1 IOr

Stred Fife PllrbLlrkl Ambulance R\'ad Stalc lj(m Issue GOB I~s\lC oJ (j()[3 IsSlie or COllllluuilY ClIrL-v'Rn,.\J U,)\cnunenlill

~ Protection Rt:cn::atKln aOORCSClle Nfudullcf\ ~ Ihgh\\,u\'l\id ~ 2QO(, ~ J)e\'ck,pn1L,,1 CapilulResefYc ~ C<)llllfljlcncy Ftuili

Rc\emll.;~

la'\e~ ::& 41!:!)% $ 711,695 , 850.263 $ 207,JIX $ [57,+11 41.1:1.1:1.1 2.)')7.394

Lh:ense~ ,mu pcnnb 55.514 55.514

Inlcrc~1 anJ rcnls J35 1,534 8,229 4\:<9 347 '" 4JlO II 122 5,4.14 7,831 JO[ [4,817 4],80\:<

In(cr!,Ul\'cllllTIcntal rc\cnuc~ 429,62\) R49,753 [HO.l55 90,000 [,549,5J7

5,341 252,855 258,1%

1,456 1,45(,

ContnbuUurn pflvalc SUUfCC +1,71:1.5 62,'J6K 107,753

Mi."ccllanc(lll~ rc\em.IC~ ---"'-'"- ~ 2,tXi2

TowlRevenues 424,472 1,152.85\:< 1,157,270 207,807 ~ ~ ~ ___ '_1 -.!.£. ~ ~ 216.313 ~ ~ 4,415,720

b~nditUfcs

Currcnt

U<::ncralgo\'cn1111L"1l1 54,752 54,752

Public safelY 82[,(.05 2m,16'J 48,315 1,073,089

Public \\orl\:; 458,156 "'() W7,869 8,<J26 18,159 1,2'.4,000

Parks and r<::creatlon [,330,')W 11:1.0,155 IOJ,nH 1,614,937

CaplHd llutlu) 1d::\·cl.lfTl1L"Il! ~ ~ ~ 1,422,103 326535 1,977,271

T\llillex~IKhture~ 45H,lx, 821,W5 1,330,9<)4 203,169 ~ ~ ~ ~ ~ [,43[,029 I~O,155 503134 6,O14,()49

0\ E'\o.:<::ss (dcf!C1Cl1C~) 01' rc\'enues ll\"Cf expenditurc~ l33,6~) 331153 (173,724) 4.638 ~ ~ ~ (3304%) ~ (1,425,5')5) t286,<J2!) ~ ~ (i,5'J8,329)

~ --- ---Other flJlallcing source (ll~cS)

BorU rcfinancmg proceed.."

BooJprcmum

.suc llf.;uprt,dasSCl 150 150

Payml."Ill III rct'tuKl b,.m..-b

Booorefinaocu1gI!'\p.:llses

Transfer m [28J87 128JH7

Transfcr out ~ t334,783) t20,Om) ~ ~ ~ --- (I,OCXJ.c~,XJ) (!J77,4K3)

rol .. 1 olha lin.ll}.;mg S<)lIfCC~ lu:;<::~1 ~ (334.7::0) ~ ~ ~ ~ --- ISO (I,OOO.mO) ll.248,9461

Nct Challge U1 Fund l3alances (50,6)1,4) (3530) (65,337) 1.138 3t1.,895 (7J::I6) 47,118 (33,4%) (78,051) (1,425,595) (286,921) L757 (985,183) (2,~7.275)

FllflJ 13a~Hlccs, BCglllllUlg or Year 42.'->02 226,{ltl.5 ~ 76,523 ~ ~ ~ 33,4% 7H.05J .t935,913 3,4[3,756 ~ 1,559$m 1O,::i72,'JH6

Fund Balance, End of Year ~ ;$ 222555 $ 22~4IU_ $ 77fh[ _ $ 6(i,8~4_ ~_ (2,426) _~_~_8}30_ ~$~~~ --,-----_$ 2510,318 _$ _. , 3,126,1:1.35 $ 12030(, ~ 7}25,71 !

Budgetary Comparison Schedules Non-major Special Revenue Funds,

Debt Service Fund and

Capital Project Funds

65

MIDDLETOWN TOWNSHIP

BUDGETARY COMPARISON SCHEDULE - GENERAL STREET LIGHTING FUND

(SUPPLEMENTARY INFORMATION)

F or the Year Ended December 31, 2010

Budgeted Ammmts Variance with Final Budget

Actual Positive Original Final Amounts (Negative)

REVENUES Taxes $ 414,682 $ 414,682 $ 418,796 $ 4,114 Interest and rents 1,000 1,000 335 (665) Charges for services 4,800 4,800 5,341 541

TOTAL REVEN UES 420,482 420,482 424,472 3,990

EXPENDITURES CWTent

Public works 453,995 462,995 458,156 (4,839)

TOTAL EXPENDITURES 453,995 462,995 458,156 (4,839)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (33,513) (42,513) (33,684) 8,829

OTHER FINANCING SOURCES (USES) Transfer in Transfer out (17,000) (17,000) (17,000)

TOTAL OlliER FINANCING SOURCES (USES) (17,000) (17,000) (17,000)

NET INCREASE (DECREASE) IN FUND BALANCE (50,513) (59,513) (50,684) 8,829

FUND BALANCE, BEGINNING 42,902 42,902 42,902

FUND BALANCE (DEFICIT), ENDING $ (7,61 I) $ (16,611) $ (7,782) $ 8,829

66

MIDDLETOWN TOWNSHIP

BUDGETARY COMPARISON SCHEDULE - FIRE PROTECTION FUND


Year Ended December 31, 2010

Budgeted Amounts Variance with Final Budget


REVENUES Taxes $ 718,643 $ 718,643 $ 721,695 $ 3,052 Interest and rents 1,800 1,800 1,534 (266) Intergovernmental revenues 381,703 431,703 429,629 (2,074)

TOTAL REVEN UES 1,102,146 1,152,146 1,152,858 712

EXPENDITURES Current

Public safety 767,363 827,363 821,605 (5,758)


EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 334,783 324,783 331,253 6,470

OTHER FINANCING SOURCES (USES) Transfers in Transters out (334,783) (334,783) (334,783)

TOTAL OTHER FINANCING SOURCES (USES) (334,783) (334,783 ) (334,783)

NET INCREASE (DECREASE) IN FUND BALANCE ( 10,000) (3,530) 6,470


FUND BALANCE, ENDING $ 226,085 $ 216,085 $ 222,555 $ 6,470

67

MIDDLETOWN TOWNSHIP

BUDGETARY COMPARISON SCHEDULE - PARKS AND RECREATION FUND



Budgeted AmOlmts Variance with Final Budget

Actual Positive Original Final AmOlmts (Negative)

REVENUES Taxes $ 844,461 $ 844,461 $ 850,263 $ 5,802 Interest and rents 8,100 8,100 8,229 129 Charges tor services 232,500 232,500 252,855 20,355 Contributions private SOLU"Ce 12,500 12,500 44,785 32,285 Miscellaneous 1,138 1,138

TOTAL REVENUES 1,097,561 1,097,561 1,157,270 59,709

EXPENDITURES CLUTent

Parks and recreation 1,341,374 1,386,374 1,330,994 (55,380)

TOTAL EXPENDITURES 1,341,374 1,386,374 1,330,994 (55,380)


OTHER FINANCING SOURCES (USES) Transfers in 145,387 145,387 128,387 (17,000) Transfers out (20,000) (20,000) (20,000)

TOTAL OTHER FINANCING SOURCES (USES) 125,387 125,387 108,387 (17,000)

NET INCREASE (DECREASE) IN FUND BALANCE ( 118,426) (163,426) (65,337) 98,089



68

MIDDLETOWN TOWNSHIP

BUDGETARY COMPARISON SCHEDULE - AMBULANCE AND RESCUE FUND



Budgeted AmOlmts Variance with Final Budget


REVENUES Taxes $ 205,850 $ 205,950 $ 207,318 $ 1,368 Interest and rents 800 800 489 (311 )

TOTAL REVENUES 206,650 206,750 207,807 1,057

EXPEN DITURES Current

Public Safety 203,150 203,250 203,169 (81)

TOTAL EXPENDITURES 203,150 203,250 203,169 (81)


OTHER FINANCING SOURCES (USES) Transfers in Transfers out (3,500) (3,500) (3,500)

TOTAL OTHER FINANCING SOURCES (USES) (3,500) (3,500) (3,500)

NET INCREASE (DECREASE) IN FUND BALANCE 1,138 1,138



69

MIDDLETOWN TOWNSHIP

BUDGETARY COMPARISON SCHEDULE - ROAD MACHINERY FUND





REVENUES Taxes $ 155,420 $ 155,420 $157,441 $ 2,021 Interest and rents 347 347

TOTAL REVENUES 155,420 155,420 157,788 2,368

EXPENDITURES Current

Public works 890 890 Capital outlay 142,525 142,525 116,803 (25,722)



OTHER FINANCING SOURCES (USES) Transters in Transters out (1,200) (1,200) (1,200)


NET INCREASE (DECREASE) IN FUND BALANCE 11,695 11,695 38,895 27,200



70

MIDDLETOWN TOWNSHIP

BUDGETARY COMPARISON SCHEDULE - FIRE HYDRANT FUND





REVENUES Taxes $ 41,831 $ 41,831 $ 41,881 $ 50 Interest and rents 100 100 48 (52)

TOTAL REVENUES 41,931 41,931 41,929 (2)

EXPENDITURES Cun-ent

Public safety 46,025 49,025 48,315 (710)

TOTAL EXPENDITURES 46,025 49,025 48,315 (710)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (4,094) (7,094) (6,386) 708

OTHER FINANCING SOURCES (USES) Transfer in Transfer out (1,000) (l,000) (1,000)


NET INCREASE (DECREASE) IN FUND BALANCE (5,094 ) (8,094 ) (7,386) 708

FUN D BALAN C E, BEGINN IN G 4,960 4,960 4,960

FUND BALANCE (DEFICIT), ENDING $ ( 134) $ (3,134) $ (2,426) $ 708

71

MIDDLETOWN TOWNSHIP

BUDGETARY COMPARISON SCHEDULE - STATE HIGHWAY AID FUND



Budgeted AInounts Variance with Final Budget

Actual Positive Original Final AInolll1ts (Negative)

REVENUES Intergovernmental revenue $ 850,579 $ 850,579 $ 849,753 $ (826) Interest and rents 5,000 5,000 4,310 (690) Miscellaneous revenue 924 924

TOTAL REVENUES 855,579 855,579 854,987 (592)

EXPENDITURES CUlTent

Public works - highways and streets 959,331 1,059,331 807,869 (251,462)

TOTAL EXPENDITURES 959,331 1,059,331 807,869 (251,462)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (103,752) (203,752) 47,118 250,870

OTHER FINANCING SOURCES (USES) Transfer in Transfer out

TOTAL OTHER FINANCING SOURCES (USES)

NET INCREASE (DECREASE) IN FUND BALANCE (103,752) (203,752) 47,118 250,870



72

MIDDLETOWN TOWNSHIP

BUDGETARY COMPARISON SCHEDULE - DEBT SERVICE FUND

(SUPPLEMENT AR Y INFORMATION)


REVENUES Taxes Interest and rents

TOTAL REVENUES

EXPENDITURES CWTent

General government Debt service

TOTAL EXPENDITURES

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES) Bond proceeds Cost ofissuance, net premiwn Refunding of J 998 and 2995 bonds Transfer in Transfer out


NET INCREASE (DECREASE) IN FUND BALANCE

FUND BALANCE, BEGINNING

FUND BALANCE, ENDING

Budgeted Amounts

Original

$3,119,364 3,500

3,122,864

3,337,440

3,337,440

(214,576)

(32,000)

(32,000)

(246,576)

423,079

$ 176,503

73

Final

$3,119,364 3,500

3,122,864

3,337,440

3,337,440

(214,576)

(32,000)

(32,000)

(246,576)

423,079

$ 176,503

Actual Amounts

$3,128,373 4,686

3,133,059

25,706 3,094,463

3,120,169

12,890

5,620,000 (62,561)

(5,557,439)

(32,000)

(32,000)

(19,110)

423,079

$ 403,969

Variance with Final

Budget Positive

(Negative)

$ 9,009 1,186

10,195

25,706 (242,977)

(217,271)

227,466

5,620,000 (62,561 )

(5,557,439)

227,466

$ 227,466

MIDDLETOWN TOWNSHIP

BUDGETARY COMPARISON SCHEDULE

GENERAL OBLIGATION BOND ISSUE OF 1997 FUND



Budgeted Amounts

Actual Original Final Amounts

REVENUES Interest and rents $ 600 $ 600 $ 11

TOTAL REVENUES 600 600 11

EXPENDITURES Capital outlay 68,303 68,303 33,507

TOTAL EXPENDITURES 68,303 68,303 33,507

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (67,703) (67,703) (33,496)

OTHER FINANCING SOURCES (USES) Transter in Transfer out


NET INCREASE (DECREASE) IN FUND BALANCE (67,703) (67,703) (33,496)

FUND BALANCE (DEFICIT), BEGINNING 33,496 33,496 33,496

FUND BALANCE (DEFICIT), ENDING $ (34,207) $ (34,207) $

74


Positive (Negative)

$ (589)

(589)

(34,796)

(34,796)

34,207

34,207

$ ~4,207

MIDDLETOWN TOWNSHIP





Budgeted Amounts


REVENUES Interest and rents $ $ $ 122 Sale of capital asset 150

TOTAL REVENUES 272

EXPEN DITURES Capital outlay 80,000 78,323

TOTAL EXPENDITURES 80,000 78,323

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (80,000) (78,051)

OTHER FrNANCING SOURCES (USES) Transfer in Transfer out


NET INCREASE (DECREASE) IN FUND BALANCE (80,000) (78,051 )


FUND BALANCE (DEFICIT), ENDING $ 78,051 $ (1,949) $

75

Variance with

Final Budget Positive

(Negative)

$ 122 150

272

(1,677)

(1,677)

1,949

1,949

$ 1,949

MIDDLETOWN TOWNSHIP





Budgeted AmOLmts

Actual Original Final AmOLll1ts

REVENUES Interest and rents $ 50,000 $ 50,000 $ 5,434

TOTAL REVENUES 50,000 50,000 5,434

EXPENDITURES

Public works 8,926 Capital outlay 4,620,575 4,620,575 1,422,103

TOTAL EXPENDITURES 4,620,575 4,620,575 1,431,029

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (4,570,575) (4,570,575) (1,425,595)

OTHER FINANCING SOURCES (USES) Transter in Transfer out


NET INCREASE (DECREASE) IN FUND BALANCE (4,570,575) ( 4,570,575) (1,425,595)

FUND BALANCE, BEGINNING 3,935,913 3,935,913 3,935,913

FUND BALANCE (DEFICIT), ENDING $ (634,662) $ (634,662) $ 2,510,318

76


Positive (Negative)

$ (44,566)

(44,566)

8,926 (3,198,472)

(3,189,546)

3,144,980

3,144,980

$ 3,144,980

REVENUES intergovernmental revenues

TOTAL REVENUES

EXPENDITURES CWTent

Parks and recreation

TOTAL EXPENDITURES

EXCESS OF REVENUES

MIDDLETOWN TOWNSHIP


COMMUNITY DEVELOPMENT FUND



Budgeted Amounts

Original Final

$ $

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES) Transters in Transters out


NET INCREASE (DECREASE) IN FUND BALANCE

FUND BALANCE, BEGINNING

FUND BALANCE, ENDING $ $

77


Actual Positive Amounts (Negative)

$ 180,155 $ 180,155

180,155 180,155

180,155 180,155

180,155 180,155

$ $

MIDDLETOWN TOWNSHIP

BUDGETARY COMPARISON SCHEDULE - CAPITAL RESERVE FUND





REVENUES Licenses and penuits $ $ $ 55,514 $ 55,514 Interest and rents 25,000 25,000 7,831 (17,169) I ntergo vernmental revenues 20,000 20,000 90,000 70,000 Contributions private source 83,000 83,000 62,968 (20,032)

TOTAL REVENUES 128,000 128,000 216,313 88,313

EXPEN DITURES Current

General government 329,423 329,423 54,752 (274,671 ) Public safety 50,000 50,000 (50,000) Public works 18,159 18,159 Parks and recreation 640,000 640,000 103,788 (536,212) Capital Outlay 326,535 326,535

TOTAL EXPENDITURES 1,019,423 1,019,423 503,234 (516,189)


OTHER FINANCING SOURCES (USES) Transfers in Transfers out


NET INCREASE (DECREASE) IN FUND BALANCE (891,423) (891,423) (286,921 ) 604,502


FUND BALANCE, ENDING $ 2,522,333 $ 2,522,333 $ 3,126,835 $ 604,502

78

MIDDLETOWN TOWNSHIP

BUDGETARY COMPARISON SCHEDULE - CURB/ROAD REVOLVING FUND



Budgeted Arl1Cllll1ts Variance with Final Budget


REVENUES [nterest and rents $ 800 $ 800 $ 301 $ (499) Special assessment 1,456 1,456

TOTAL REVENUES 800 800 1,757 957

EXPENDITURES CUITent

Public works Capital outlay

TOTAL EXPENDITURES

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 800 800 1,757 957

OTHER FINANCING SOURCES (USES) Transfers in Transfers out


NET INCREASE (DECREASE) IN FUND BALANCE 800 800 1,757 957


FUND BALANCE, ENDING $ 119,349 $ 119,349 $ 120,306 $ 957

79

MIDDLETOWN TOWNSHIP

BUDGETARY COMPARISON SCHEDULE - CONTINGENCY FUND





REVENUES Interest and rents $ 25,000 $ 25,000 $ 14,817 $ (10,183)

TOTAL REVENUES 25,000 25,000 14,817 (10,183)

EXPENDITURES CWTent

General govemment

TOTAL EXPENDITURES

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 25,000 25,000 14,817 (10,183)

OTHER FINANCING SOURCES (USES) Transfers in Transfers out (1,000,000) (1,000,000) (1,000,000)

TOTAL OTHER FINANCING SOURCES (USES) (1,000,000) (1,000,000) (1,000,000)

NET INCREASE (DECREASE) IN FUND BALANCE (975,000) (975,000) (985,183) (10,183)


FUND BALANCE, ENDING $ 584,803 $ 584,803 $ 574,620 $ (10,183)

80

MIDDLETOWN TOWNSHIP

BUDGETARY COMPARISON SCHEDULE - INVESTMENT FUND



Budgeted Amounts


REVENUES

I nterest and rents $ 1,200,000 $ 1,200,000 $ 630,234 Gain (loss) on investments 404,483 Miscellaneous 717

TOTAL REVENUES 1,200,000 1,200,000 1.035,434

EXPEN DITURES CWTent

General govemment 40,000 40,000 39,180

TOTAL EXPENDITURES 40,000 40,000 39,180

EXCESS OF REVENUES

OVER (UNDER) EXPENDITURES 1,160,000 1,160.000 996,254

OTHER FINANCING SOURCES (USES) Transfers in Transfers out (1,850,000) (1,850,000) (l,850,000)

TOTAL OTHER FINANCING SOURCES (USES) (1,850,000) ( 1,850,000) (1,850,000)

NET INCREASE (DECREASE) IN FUND BALANCE (690,000) (690,000) (853,746)


FUND BALANCE, ENDING $ 41,953,345 $41,953,345 $ 41,789,599

81


Positive (Negative)

$ (569,766) 404,483

717

(164,566)

(820)

(820)

(163,746)

(163,746)

$ (163,746)

MIDDLETOWN TOWNSHIP

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - TOWNSHIP ESCROW FUND



Township Escrow Fund - This fund is used to account for assets held by the Township in agent capacity for developers as required by developer agreements.

01101110 Additions Deletions 12/31110 Assets

Cash and cash equivalents $1,753,672 $ 7,993 $ $ 1,761,665

Total Assets $1,753,672 $ 7,993 $ $ 1,761,665

Liabilities Accounts payable $ $ 84,216 $ $ 84,216 Customer deposits 1,399,813 79,635 1,320,178 Accumulated interest 353,859 3,412 357,271

Total Liabilities $ 1,753,672 $ 87,628 $ 79,635 $ 1,761,665

82

STATISTICAL SECTION

83

MIDDLETOWN TOWNSHIP


December 31, 2010

Statistical Section

This part of the Township of Middletown's comprehensive annual financial report presents detailed information as a context for understanding this year's financial statements, note disclosures, and supplementary information.

Contents

Financial Trends

These schedules contain trend information that may assist the reader in assessing the government's current financial performance by placing it in historical perspective.

Revenue Capacity

These schedules contain information that may assist the reader in assessing the viability of the government's most significant local revenue sources.

Debt Capacity

These schedules present information that may assist the reader in analyzing the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future.

Economic & Demographic Information

These schedules offer economic and demographic indicators to help the reader understand the environment within which the government's financial activities take place.

Operating Information

These schedules contain service and infrastructure indicators to help the reader understand how the information in the government's financial statements relates to the services the government provides and the activities it performs.

Schedules

1-4

5 - 8

9 - 12

13 - 14

15 -17

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant

year. Middletown Township implemented GASB 34 in fiscal year 2003,

84

Schedule 1 MIDDLETOWN TOWNSHIP

NET ASSETS BY COMPONENT

Last Eight Fiscal Years

Fiscal Year 2010 2009 2008 2007 2006 2005 2004 2003

Governmental Activities Invested in Capital Assets, Net of Related Debt $ 18,225,583 $ 19,932,022 $ 13,853,185 $ 22,552,941 $ 6,996,862 $ 19,318,796 $ 17,052,139 $ 15,202,028 Restricted 5,098,898 9,774,983 15,103,727 5,186,616 9,831,370 3,226,818 3,435,037 4,560,151 Unrestricted (Deficit) 46,936,410 42,002,215 44,736,617 44,733,314 53,630,677 47,616,459 50,208,504 53,878,686

Total Governmental Activities Net Assets $ 70,260,891 $ 71,709,220 $ 73,693,529 $ 72,472,871 $ 70,458,909 $ 70,162,073 $ 70,695,680 73,640,865

Business-Type Activities Invested in Capital Assets, Net of Related Debt $ 4,492,127 $ 4,105,739 $ 4,147,236 $ 4,181,370 $ 4,134,183 $ 4,092,058 $ 4,211,555 $ 4,164,445 Restricted Unrestricted (Deficit) (464,130) (69,875) (116,091) (90,552) (131,796) (142,807) (50,001) 424,200

Total Business-Type Activities Net Assets _~_ 4,027,997 -~ 4,035,864 $ 4,031,145 $ 4,090,818 $ 4,002,387 $ 3,949,251 $ 4,161,554 $ 4,588,645

Pnmary Govenmlent Invested in Capital Assets, Net of Related Debt $ 22,717,710 $ 23,537,761 $ 18,000,421 $ 26,734,311 $ 11,131,045 $ 23,410,854 $ 21,263,694 $ 19,366,473 Restricted 5,098,898 9,774,983 15,103,727 5,186,616 9,831,370 3,226,818 3,435,037 4,560,151 Unrestricted (Deficit) 46,472,280 41,932,340 44,620,526 44,642,762 53,498,881 47,473,652 50,158,503 54,302,886

Total Primary Government Net Assets $ 74,288,888 $ 75,245,084 $ 77,724,674 $ 76,563,689 $ 74,461,296 $ 74,111,324 $ 74,857,234 $ 78,229,510 00 VI

Source: Middletown Township Financial Statements

Expenses Governmental Activities:

General Government Public Safety Public Works Parks and Recreation Miscellaneous Capital Outlay/Development Interest on Long-Tenn Debt Unallocated Deprecation Expense

Total Governmental Activities Expense

Business-Type Activities Proprietary FWlds (combined) Country Club

Farm Fund Total Business-Type Activities Expenses

Total Primary Government Expenses

Program Revenues Governmental Activities:

Charges for Services: General Govenunent Public Safety Public Works Parks and Recreation

Operating Grants and ContrIbutions Total Governmental Activities Program Revs.

Business-Type Activities Charges for Services:

Proprietary Funds (combined) COlUlUy Club Farm Fund

Operating Grants and Contnbutions Total Business-Type Activities Program Revs.

Total Primary Government Program Revenues

Net (Expense)/Revenue Governmental Activities: Business-Type Activities T atal Primary Govenunent Net Expense

General Revenues and Other Changes in Net Assets Governmental Activities:

Property Taxes Other Taxes Investment Income Miscellaneous Special item-Capital assets from Private Purpose Trust Transfers, net Proceeds from Debt Restructuring

Total Governmental Activities

Business-Type Activities: Invesbnent Income Transfers, net

Total Business-Type Activities

Total Primary Government General Revenues and Other

Change in Net Assets Governmental Activities Business-Type Activities Total Primary Government Change in Net Assets

Source: Middleto"ffi Township Financial Statements

2010

2,023,182

12,218,168

6,719,377

1,825,931

672,637

1,168,279

1,455,222

26,082,796

36,469

175,308

26,258,104

1,017,264

1,678,755

4,451,210

252,855

2,192,687

9,592,771

147,000

35,000

182,000

9,774,771

(16,490,025)

6,692 (16,483,333)

9,246,523

4,419,632

1,168,697

7,285

680,196

19,363

15,541,696

4,804

(19,363)

(14,559)

15,527,137

(948,329)

(7,867) (956,196)

MIDDLETOWN TOWNSHIP

CHANGES IN NET ASSETS

2009

1,895,527

12,190,862

6,615,980

1,402,496

695,397

1,365,635

1,433,205

25,599,102

155,435

11,853

167,288

25,766,390

LOO:t,73t,

lA03,9g~

4,483,431

242,338

2,054,509

147,000

35,000

182,000

(16,411,106)

14,713

8,602,678

·Lutl!.IY;

488,609

97,677

613,127

123,576

9,369

(19,363)

(9,994)

(2,484,309)

4,719 (2,479,590)


2008

2,477,349

10,354,328

5,733,310

1,231,572

763,240

1,048,713

1,439,857

23,048,369

179,165

29,815

208,980

23,257,349

1,945,023

916,340

3,861,084

229,942

2,218,492

9,170,881

154,049

35,000

189,049

9,359,930

(13,877,488)

(19,931) (13,897,419)

7,892,013

4,713,317

2,419,102

29,439

44,275

15,098,146

4,533

(44,275)

(39,742)

15,058,404

1,220,658

(59,673)

1,160,985

86

Fiscal Year 2007

2,436,600

10,531,545

5,804,239

1,439,713

742,180

1,037,432

1,396,024

23,387,733

182,254

20,007

202,261

23,589,994

1,730,396

707,009

3,726,137

230,336

2,172,304

8,566,182

236,265

35,000

271,265

8,837,447

(14,821,551)

69,004

(14,752,547)

7,095,159

5,082,209

2,626,401

1,848,864

31,435

16,684,068

9,271

(31,435)

(22,164)

16,661,904

1,862,517

46,840 1,909,357

2006

2,742,439

10,128,030

5,629,525

1,450,437

889,862

972,446

1,286,762

23,099,501

188,371

20,046

208,417

23,307,918

5,512,149

1,013,401

6,659

199,872

2,454,442

9,186,523

248,622

35,000

283,622

9,470,145

( 13,912,978)

75,205

(13,837,773)

5,882,089

5,109,646

2,870,316

318,381

29,382

14,209,814

7,313

(29,382)

(22,069)

14,187,745

296,836

53,136

349,972

2005

2,335,557

9,377,597

5,414,221

1,204,899

859,733

857,813

990,810

21,040,630

182,630

22,375

205,005

21,245,635

5,216,448

883,905

32,559

178,112

3,661,481

9,972,505

225,565

35,000

260,565

10,233,070

(11,068,125)

55,560

(11,012,565)

5,013,201

3,914,290

1,611,271

(329,725)

276,983

10,486,020

9,120

(276,983)

(267,863)

10,218,157

(582,105)

(212,303) (794,408)

2004

2,127,835

8,702,906

5,157,621

1,123,684

657,217

159,960

1,544,589

859,949

20,333,761

156,484

156,484

20,490,245

4,259,419

787,282

11,066

160,163

2,284,066

7,501,996

334,823

(21,942)

312,881

7,814,877

(12,831,765)

156,397 (12,675,368)

4,880,056

3,581,803

980,798

(526,975)

439,900

530,998

9,886,580

(583,488)

(583,488)

9,303,092

(2,945, \85)

(427,091) (3,372,276)

Schedule 2

2003

2,221,228

8,561,957

4,107,650

1,231,208

422,320

180,901

970,250

822,333

18,517,847

266,818

266,818

18,784,665

3,893,747

958,333

4,788

143,431

5,351,253

10,351,552

219,722

897,015

1,116,737

11,468,289

(8,166,295)

849,919 (7,316,376)

4,859,991

3,385,233

826,983

192,565

485,435

9,750,207

(667,671)

(667,671)

9,082,536

1,583,912

182,248 1,766,160

00 --.l

General Fund Reserved Unreserved

Total General Fund

All Other Govemmental Funds Reserved Unreserved, reported in:

Special Revenue Funds Capital Project Funds

Total all Other Govemmental Funds

Total Govemmenta1 Funds

Source· Middletown Township Financial Statements

$

$

$

$

$

2010 2009

$ 2,065,794 768,709 2,065,794 $ 768,709

1,912,720 $ 2,040,292

1,393,632 1,433,418 46,612,927 50,165,700 49,919,279 $ 53,639,410

51,985,073 __ $_ 54,408,119

MIDDLETOWN TOWNSHIP

FUND BALANCES OF GOVERNMENTAL FUNDS


Fiscal Year 2008 2007 2006

$ $ $ 1,621,983 1,886,762 2,133,463

$ 1,621,983 $ 1,886,762 $ 2,133,463

$ 7,679,482 $ 2,254,030 $ 2,383,381

1,057,201 1,057,203 1,269,890 51,745,306 51,204,947 51,182,443

$ 60,481,989 $ 54,516,180 $ 54,835,714

_l_62,103,972 $ 56,402,942 $ 56,969,177

Schedule 3

2005 2004 2003

$ $ $ 1,739,957 1,401,762 3,447,023

$ 1,739,957 $ 1,401,762 $ 3,447,023

$ 2,417,204 $ 2,192,914 $ 2,467,855

1,012,340 1,043,992 887,934 45,600,846 48,182,642 49,697,169

$ 49,030,390 $ 51,419,548 $ 53,052,958

$ 50,770,347 $ 52,821,310 $ 56,499,981


CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS


Fiscal Year 2010 __ 2009 2008 2007 2006 2005 2004 2003

Revenues Taxes 13,701,196 12,376,900 12,485,790 11,939,159 10,837,542 9,022,988 8,537,935 8,254,338

Licenses and Permits 1,076,871 1,104,066 1,232,017 1,226,708 1,065,459 871,321 728,097 775,757

Fines and Forfeits 227,958 206,120 218,243 204,530 191,205 168,544 170,486 166,602

Interest and Rents 764,214 1,376,938 2,470,867 2,636,968 2,880,943 1,624,536 1,177,421 982,465

Intergovemmental Revenues 2,369,267 1,881,926 2,034,827 1,858,751 2,087,531 2,842,287 1,899,740 3,976,286

Charges for Services 6,093,799 5,802,550 5,558,483 5,178,180 5,324,263 4,828,022 3,908,282 3,710,553

Special Assessment 1,456 610 1,995 13,300 246,766 420,033 402,059 336,906

Contribution Private Source 145,253 144,678 181,665 311,553 365,661 797,259 372,764 1,365,888

Gainl(Loss) on Investments 404,483 (890,769) 2,419,102 1,791,035 257,858 (378,688) (549,030) (325,790)

Miscellaneous Revenues 3,658 103,680 13,208 21,829 36,731 64,431 16,408 193,322

Total Revenues 24,788,155 22,106,699 26,616,197 25,182,013 23,293,959 20,260,733 16,664,162 19,436,327

Expenditures General Govemment 1,770,342 1,643,678 2,477,349 2,222,705 5,754,868 2,637,074 2,691,037 2,209,267

Public Safety 1l,095,416 11,147,885 10,333,884 10,185,597 9,964,353 9,289,930 8,735,349 8,446,966

Public Works 6,403,942 6,296,113 5,733,310 5,584,836 5,359,786 5,502,477 6,033,382 4,496,123

Parks and Recreation 1,614,937 1,241,482 1,231,572 1,308,995 2,291,955 2,472,278 1,244,146 1,386,758

Miscellaneous Expenditures 672,637 695,397 763,240 742,180 889,862 877,513 657,217 466,004

Capital Outlay/Development 2,226,965 6,081,833 7,318,891 3,122,175 682,097 358,058 398,832 836,968

Debt Service

00 Principal 2,004,214 1,632,251 1,684,566 1,691,971 1,308,620 1,036,238 1,023,551 991,650

00 Interest 1,090,249 1,223,019 1,067,171 981,799 786,680 580,476 705,203 953,390 Other Charges 25,706 21,829 25,602 36,920 21,790

Total Expenditures 26,904,408 29,983,487 30,635,585 25,877,178 27,060,01l 22,754,044 21,488,717 19,787,126

Excess of Revenues Over (Under) Expenditures (2,116,253) (7,876,788) (4,019,388) (695,165) (3,766,052) (2,493,311 ) (4,824,555) (350,799)

Other Financing Sources (Uses) Issuance of Refunding Bonds 5,620,000 7,830,000 10,000,000 10,000,000 8,325,000 10,000,000 Premium on Bond Issuance 78,123 34,926 Discount on Bond Issuance (64,500) (26,914) Payment to Refunded Bonds Escrow Agent (5,557,439) (7,750,000) (8,214,931 ) (9,798,100) Proceeds from Debt Restructuring 530,998 Bond Refinancing Expenses (62,561) (119,953) Sale of Capital Assets 3,627 19,189 5,000 Transfers In 2,949,063 2,063,276 1,945,176 1,864,739 2,672,270 3,047,336 2,949,553 3,210,165 Transfers Out (3,259,483) (1,939,700) (2,224,758) (1,818,948) (2,642,888) (2,986,410) (2,509,653) (2,724,730) Total Other Financing Sources (Uses) (306,793) 180,935 9,720,418 50,791 9,964,882 205,921 1,145,884 485,435

PlioI' Period Adjustment 236,427 (41,480) Transfer fi'om Proprietary Funds 40,357,032

Net Change in Fund Balances (2,423,046) (7,695,853) 5,701,030 (644,374) $ 6,198,830 $ (2,050,963) (3,678,671 ) 40,450,188

Debt Service as a Percen1age of Non Capital Expenditures 12.66% 12.03% 11.87% 11.92% 10.21% 8.19% 8.87% 11.09%

Source: Middletown Township Financial Statements


ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY


Ratio of Total Assessed Value Middletown

Less: Estimated Actual to Total Township Real Property Tax Exempt Total Taxable Values of Real Estimated Actual Municipal

Year Assessed Value (I) Property Assessed Value Property Value (3) Millage Rate

2010 $ 614,395,910 $ 85,180,440 $ 529,215,470 $ 6,700,064,449 9.17% 17.57

2009 615,053,590 84,830,980 530,222,610 5,965,602,231 1031% 15.84 00 \.0

2008 615,237,130 78,259,220 536,977 ,910 6,342,650,825 9.70% 14.84

2007 610,692,980 78,265,220 532,427,760 5,556,806,005 10.99% 13.34

2006 607,024,880 77,366,970 529,657,910 6,010,147,327 10.10% 11.28

2005 (2) 603,913,360 76,965,320 526,948,040 6,762,747,592 8.93% 9.78

2004 149,095,580 19,205,750 129,889,830 5,324,842,143 2.80% 37.17

2003 146,330,185 18,646,060 127,684,125 4,720,328,548 3.10% 37.41

Source: Middletown Township Tax Department (Bucks County, PA Real Estate Assessment Roll)

(I) Assessed value of real property includes all property within the Township. County assessment records do not provide categorization by use or ownership.

(2) 2005 is the tlrst year to reflect Bucks County's change in the ratio of assessed value to fair market value (from 25% to 100%).

(3) Information provided by Pennsylvania State Tax Equalization Board (STEB) for Bucks County, PA

\0 0

MIDDLETOWN TOWNSHIP

PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS

Last Eight Fiscal Years (rate per $1,000 of assessed value)

OverlaEEing Rates

Middletown Township County

Middletown Middletown Township Township

Municipality Municipality Debt Total Middletown Bucks County Total Year 0Eerating Millage Service Millage TownshiE Millage Millage

2010 11.57 6.00 17.57 21.94211

2009 11.46 4.38 15.84 21.94211

2008 11.46 3.38 14.84 21.94211

2007 9.73 3.61 13.34 21.94211

2006 8.67 2.61 11.28 21.94211

2005 (I) 7.53 2.25 9.78 20.4875

2004 29.28 7.89 37.17 74.50

2003 27.52 9.89 37.41 65.00

Overlapping rates are those oflocal and county governments that apply to property owners within Middletown Township.

Sources:

Middletown Township Schedule of Real Estate Taxes, Fees, and Assessments Bucks County Board of Assessments Neshaminy School District

(I) 2005 is the first year to reflect Bucks County's change in the ratio of assessed value to fair market value (from 25% to 100%).

School District

Neshaminy School District Total Millage

152.00

152.00

148.60

148.60

137.40

133.90

500.60

471.80

Schedule 6

Total Direct &

Overlapping Rates

191.51211

189.78211

185.38211

183.88211

170.62211

164.1675

612.2700

574.2100

\.0 .......


PRINCIPAL TAXPAYERS

Current Year and Nine Years Ago

December 31, 20 I 0 December 31, 2000 (5)

TaxEa~er T~Ee of Business McStome, Inc. (Kravco) Commercial Development Home Properties Real Estate Investment 800 (Eight) Trenton Assoc Apartment Complex Jefferson Woods Residential Community Reedman Toll Auto Dealership Shoppes at Flowers Mills Shopping Center Attleboro Associates Retirement & Assisted Living Guttman & Reider Real Estate Investment Oxford Investor LLC Builders & Contractors Summit Trace LP Apartment Complex Pennswood Village Retirement Community Liberty Properties LTD Real Estate Development Bucks County Ind. Devel. Corp. Commercial Development Brandywine Operating Prtnrs Commercial Development

Percentage of Taxable Total Assessed Assessed Value (1) Rank Valuation (2)

$ 21,042,460 1 3.98% 5,210,560 2 0.98% 4,368,800 3 0.83% 4,157,100 4 0.54% 3,381,520 5 0.64% 3,227,200 6 0.61% 2,861,160 7 0.54% 2,310,080 8 0.44% 2,104,480 9 0.40% 2,029,280 10 0.38%

Taxable Assessed Value (3)

$ 6,623,470 824,250

1,092,200

676,230 866,560 715,290

972,370 925,570 925,150 745,460

Rank I 7 2

10 6 9

3 4 5 8

Percentage of Total

Assessed Valuation (4)

5.34% 0.66% 0.88%

0.55% 0.70% 0.58%

0.78% 0.75% 0.75% 0.60%

Please note: when comparing data between the displayed periods, Bucks County changed the ratio of assessed value to fair market value (25% to 100%) in 2005.

(1) Information supplied by Ray Chapman, Middletown Township Tax Collector

(2) Information derived from Bucks County, PA Real Estate Assessment Roll; Total Taxable Assessed Valuation is $529,215,470

(3) Information supplied by R.H. Saunders, Middletown Township Tax Collector

(4) Information derived from Bucks County, PA Real Estate Assessment Roll; Total Taxable Assessed Valuation is $123,970,025

(5) Data for the period ended December 31, 2001 is not available.


PROPERTY TAX LEVIES AND COLLECTIONS


Collected within the Fiscal Year of the Levy Total Collections to Date

Total Tax Levy for Fiscal Percentage of DelinquentiLiened Percentage

Year Year Amount Levy Collections Amount of Levy

2010 $ 9,298,317 $ 9,242,131 99.40% $ 144,972 $ 9,387,103 100.95%

2009 8,398,728 8,345,082 99.36% 113,703 8,458,785 100.72%

\.0 N 2008 7,856,901 7,773,093 98.93% 140,413 7,913,506 100.72%

2007 7,102,588 7,051,583 99.28% 110,495 7,162,078 100.84%

2006 5,962,587 5,787,207 97.06% 105,714 5,892,921 98.83%

2005 5,142,063 5,065,251 98.51% 90,991 5,156,242 100.28%

2004 4,817,656 4,808,045 99.80% 198,893 5,006,938 103.93%

2003 4,776,934 4,722,660 98.86% 185,885 4,908,545 102.76%

Source: Middletown Township Tax Receipt Records

'-0 W

Debt Limit

Total Net Debt Applicable to Limit

Legal Debt Margin

Total Net Debt Applicable to the Limit as a Percentage of Debt Limit

Legal Debt Margin Calculation for Fiscal Year 2010

Assessed value Add back: exempt real property Total assessed value

Debt limit (10% of total assessed value) Debt applicable to limit:

General obligation bonds Less: Amount set aside for repayment of general

obligation debt Total net debt applicable to limit

Legal debt margin

2010

$ 61,439,591

29,526,031

$ 31 ,913,560

48.06%

$ 529,215,470 85,180,440

$614,395,910

$ 61,439,591

29,930,000

(403,969) 29,526,031

$ 31,913,560


LEGAL DEBT MARGIN INFORMA nON


Fiscal Year 2009 2008 2007 2006 2005 2004 2003

$ 61,505,359 $ 61,523,713 $ 61,069,298 $ 60,702,488 $ 60,391,336 $ 59,638,232 $ 58,532,076

31,396,921 33,161,341 24,613,190 26,156,085 17,649,913 18,194,913 18,050,841

$ 30,108,438 $ 28,362,372 $ 36,456, I 08 $ 34,546,403 $ 42,741,423 $ 41,443,319 $ 40,481,235

51.05% 53.90% 40.30% 4309% 29.23% 30.51% 30.84%

Note: Under state finance law, Middletown Township's outstanding general obligation debt should not exceed 10 percent of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

Schedule ]0 MIDDLETOWN TOWNSHIP

RATIOS OF OUTSTANDING DEBT BY TYPE


Business-Type Governmental Activities Activities

Percentage of General Obligation Total Primary Personal Income Per Capita

Year Bonds Term Loan Term Loan Government (I) (1)

2010 $ 29,930,000 $ 298,761 $ 411,215 $ 30,639,976 1.92% $ 654

2009 31,820,000 322,975 467,436 32,610,411 2.77% 698

2008 33,345,000 350,226 520,390 34,215,616 2.90% 730

2007 24,980,000 399,792 570,268 25,950,060 2.18% 549 \0 ..j:::.

2006 26,560,000 506,432 617,241 27,683,673 2.31% 583

2005 17,765,000 609,811 661,492 19,036,303 1.63% 410

2004 18,310,000 711,593 703,181 19,724,774 1.64% 414

2003 18,165,000 809,970 742,442 19,717,412 1.70% 428

Note: Details regarding the township's outstanding debt can be found in the notes to the financial statements.

(I) See Schedule 13 for personal income and population data.

'-D \.))

MIDDLETOWN TOWNSHIP

RA TIOS OF NET GENERAL BONDED DEBT OUTSTANDING


Less Amounts General Obligation A vailable in Debt Net General

Year Bonds Service Fund (1) Bonded Debt

2010 $ 29,930,000 $ 403,969 $ 29,526,031

2009 31,820,000 423,079 31,396,921

2008 33,345,000 183,659 33,161,341

2007 24,980,000 366,810 24,613,190

2006 26,560,000 403,915 26,156,085

2005 17,765,000 115,087 17,649,913

2004 18,310,000 115,087 18,194,913

2003 18,165,000 114,159 18,050,841

Note: Details regarding the township's outstanding debt can be found in the notes to the financial statements.

(1) Externally restricted for repayment of debt principal.

(2) See Schedule 5 for estimated actual values of real property.

(3) See Schedule l3 for population data.

Percentage of Estimated Actual Taxable Value of

Property (2)

0.44%

0.53%

0.52%

0.44%

0.44%

0.26%

0.34%

0.38%

Schedule 11

Per Capita (3)

$ 630

672

708

521

551

380

382

392

\0 0\

Schedule 12

MIDDLETOWN TOWNSHIP

COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT

December 31,2010

Percentage Applicable to Total

Gross Middletown Amount Applicable to Overlapping Government Unit Outstanding Debt Township Middletown Township Debt

Township of Middletown (1) $ 29,930,000 100.00% $ 29,930,000 $

Neshaminy School District (2) 115,320,006 67.51% 77,852,536 77,852,536

Bucks County (3) 211,998,000 6.62% (4) 14,034,268 14,034,268

Total $ 357,248,006 $ 121,816,804 $ 91,886,804

Overlapping governments are local and county governments that coincide, at least in part, with the geographic boundaries of the Township. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Middletown Township. This process recognizes that, when considering the Township's ability to issue and repay long-term debt, the entire burden borne by the residents and businesses should be taken into account.

Sources:

(1) Middletown Township Financial Records

(2) Neshaminy School District

(3) Bucks County Finance Office

(4) Proportion share of Bucks County's existing debt as of December 31, 2010 based on ratio of Middletown Township's assessed valuation (see Table 5) to Bucks County's 2010 assessed valuation of$7,989,841,810 (source: Bucks County Board of Assessments).

\.0 -....)

MIDDLETOWN TOWNSHIP

DEMOGRAPHIC AND ECONOMIC STATISTICS

Personal Income (thousands of

Year Population (1) dollars)

2010 46,882 $ 1,596,332

2009 46,693 $ 1,177,271

2008 46,868 1,181,683

2007 47,259 1,191,541

2006 47,448 1,196,306

2005 46,390 1,169,631

2004 47,621 1,200,668

2003 46,091 1,162,092

Sources:

(I) 2005-2009 American Community Survey; 2010 Census data not yet available

(2) 2005-2009 American Community Survey; 2010 Census data not yet available

(3) Neshaminy School District


Per Capita Personal Income

(2)

$ 34,050

$ 25,213

25,213

25,213

25,213

25,213

25,213

25,213

(4) Pennsylvania Department of Labor & Industry, Center for Workforce Information and Analysis

Median Age (2)

42.3

37.8

37.8

37.8

37.8

37.8

37.8

37.8

Schedule 13

School Unemployment Enrollment (3) Rate (4)

8,802 8.30%

8,658 7.70%

8,839 5.30%

8,994 3.40%

9,214 3.80%

9,289 3.80%

9,409 4.60%

9,581 4.00%

'-0 00


PRINCIPAL EMPLOYERS

Current Year and Nine Years Ago

December 31, 20 I 0 December 31, 2000 (4)

Employer (1) St Mary Medical Center Woods Services Busch Entertainment Corp. Neshaminy School District Sykes Acquisition LLC Pennswood Village Inc. Target Corporation Reedman-Toll Autoworld Macy's Retail Holding Inc. Eldercare Resources Corp Harte Hanks Communication Lenox Inc. National Business Service Northern Health Facilities

Total

Type of Business Healthcare Education Entertainment/Theme Park Education Communication Services Retirement Community Retail Retail/Automotive Retail Healthcare Communication Services Retail Financial Services Healthcare

Employees 2,456 1,698 1,650 1,382

836 419 349 328 280 278

9,676

Rank 1 2 3 4 5 6 7 8 9 10

Percentage of Total

Township Employment

(2) 9.37% 6.48% 6.30% 5.27% 3.19% 1.60% 1.07% 1.25% 1.07% 1.06%

36.93%

(1) Information provided by Berkheimer Tax Administrator (administrator and collector of Pennsylvania Act 511 taxes).

Employ~

1,767 1,908 1,067 1,793 1,709

700

885 533 502 474

11,338

(2) Information derived from Commonwealth ofPA, Department of Labor & Industry; Total Middletown Twp. Civilian Labor Force i&26,200. (3) Middletown Twp Civilian Labor Force is not available for 2000. (4) Data for the period ended December 31, 2001 is not available.

Percentage of Total

Township Employment

Rank (3) 3 N/A

5 N/A 2 N/A 4 N/A

N/A

N/A 7

6 N/A 8 N/A 9 N/A 10

\0 \0

MIDDLETOWN TOWNSHIP

FULL TIME EQUIVALENT MUNICIPAL EMPLOYEES BY FUNCTION/PROGRAM

General Government Administration Finance

Personnel

Police Police Officers Police Civilians (1)

Public Works Administration MaintenancelLabor Summer/Seasonal

Community Services Administration Public Information Coordinator CustodiallLabor (2)

Emergency Services Officers/Inspectors Administration

Parks & Recreation Administration Equipment OperationlLabor Summer Rec/Seasonal Skate Park Misc Program Facilitators

Licenses & Inspections

Totals

Source: Middlelown Township Budget Document

2010

2 5.5

52 16

3.5 13 6

0.5

3.5

3 4

22 2.5 5.5

5.5

148.5

Method: Using 1.0 fOf each full-time employee, and .50 for each part-time and seasonal employee

(1) Police civilians include school crossing guards

(2) One custodian partially funded by Middletown Senior Citizens Association


2009

2.0 5.5

1.0

52.0 16.0

3.5 13.0 6.0

1.0 1.0 0.5

3.5 1.0

4.0 3.0

22.0 2.5 5.5

5.5

148.5

2008

2.0 5.5

1.0

53.0 16.0

3.5 13.0 4.0

2.0 1.0 2.0

3.5 1.5

4.0 3.0

22.0 2.5 5.5

5.5

150.5

Fiscal Year 2007 2006

3.0 5.5 1.0

53.0 16.0

3.5 13.0 4.0

2.0 1.0 2.0

3.5 1.5

3.5 3.0

22.0 2.5 5.5

5.5

151.0

---

3.0 5.5

1.0

52.0 16.0

3.5 12.0 4.0

2.0 1.0 2.0

3.5 1.5

3.5 3.0

22.0 2.5 5.5

5.5

149.0

Schedule 15

2005 2004 2003

4.5 4.5 4.5 5.5 5.5 6.5 1.0 2.0 2.0

53.0 54.0 54.0 16.0 17.5 17.5

3.5 2.5 3.5 11.0 15.0 19.0 4.0 3.0 2.5

2.0 2.0 2.0

2.0 2.0 1.5

2.5 3.5 3.5 1.0 1.5 2.0

3.0 2.5 2.5 3.0 3.0

21.5 21.0 21.0 2.5 2.5 2.5 5.5 7.0 6.5

7.0 9.0 9.0

148.5 158.0 160.0


OPERATING INDICATORS BY FUNCTIONIPROGRAM


Fiscal Year FunctionfProgram 2010 2009 2008 2007 2006 2005 2004 2003

General Government (I) Building Inspections Conducted 2,672 2,818 2,922 2,850 3,121 2,988 3,281 3,041 Plumbing Inspections Conducted 484 668 700 494 679 969 1,078 1,225

Building Pennits Issued 853 795 924 793 987 941 2,034 1,266

Plumbing Permits Issued 233 235 286 250 257 344 364 460

Electrical Permits Issued 324 260 364 354 433 452 568 758

Residential Value of Constructionllssued Penn its $ 12,819,482 $ 10,655,114 $ 23,051,941 $ 11,160,481 $ 16,568,803 $ 12,722,066 $ 16,279,216 $ 23,078,871

Commercial Value of Constructionllssued Permits $ 31,916,655 $ 7,902,476 $ 29,882,882 $ 43,828,263 $ 151,193,962 $ 58,218,296 $ 13,099,612 $ 14,545,515

Police (2) Criminal Arrests 776 1,538 1,857 1,900 1,644 1,457 1,445 1,472

Traffic Citations 2,632 2,377 4,168 4,806 4,597 3,621 4,033 4,611

Accident Reports 1,856 2,075 1,971 2,055 2,009 2,109 2,046 2,205

Parking Violations 95 122 115 121 156 221 197 178

Animal Control Cases Investigated 626 446 631 721 764 803 368 462

Animal Control Warnings Issued 37 27 34 42 53 46 45 38

Animal Control Prosecutions Instituted 30 25 10 27 33 64 40 51 >-'

0 Parks & Recreation (3) 0

Recreation Program Participants 8,751 7,650 8,427 7,319 7,800 7,376 5,500 5,487

Program Sessions Offered 392 394 356 357 311 296 183 164

Public Works (4) Roads Resurfaced (linear feet) by DPW 1,468 5,755 134 5,037 10,582 10,828

Number of Trees RemovedlTrimmed 131 88 81 98 137 85 63 86 Number of Signs Repairedilnstalled 99 163 167 306 224 175 112 84 Number of Drainage/Storm Drains Unclogged 22 90 80 110 105 75 77 87 Number of Repaired Potholes 570 644 265 391 375 380 388 207 Number of Repaired Sinkholes 38 35 64 98 55 75 68 59

Emergency Services (5) Total Estimated Emergency Fire Calls 1,850 1,902 992 997 1,178 1,093 1,815 NIA

Residential Fires 17 II 39 46 50 35 37 NIA

Businessllndustnal Fires 3 2 12 31 22 21 NIA

Fire investigations Conducted 214 309 275 291 40 35 236 NIA

Hazardous MaterialslPetroleum Spill Calls 54 7 97 93 17 17 13 NIA

Mechanical Inspections Conducted 197 164 181 386 478 451 652 NIA

Fire Sarety Inspections Conducted 1,570 1,508 1,412 1,322 1,525 1,159 1,000 NIA

Sources: (I) Middletown Township Licenses & Inspections Department (2) Middletown Township Police Department (3) Middletovm Township Park & Recreation Department

(4) Middletown Township Department of Public Works

(5) Middletown Township Fire Marshal Office

N/A Information not available


CAPITAL ASSET STATISTICS BY FUNCTIONfPROGRAM


Fiscal Year F unctionlProgram 2010 2009 2008 2007 2006 2005 2004 2003

General Government (1) Square Footage Occupied 56,122.00 56,122.00 56,122.00 56,122.00 56,122.00 56)22.00 56,122.00 56,122.00

Inspection Vehicles 2 2 2 2 2 2 2 2

Other Departmental Vehicles J J

Police (2) I Stations Patrol Units 50 50 50 50 50 50 48 43

Trained Canines 3 4 4 4 4 4 4 4

Parks & Recreation (3) Number of Recreation Facilities 19.0 19.0 18.0 18.0 18.0 18.0 18.0 18.0

Acreage of Park Land 141.5 141.5 136.5 136.5 136.5 136.5 136.5 136.5

Acreage of Greenbelts/Open Space 518.0 518.0 523.0 523.0 523.0 523.0 523.0 523.0

Public Works (4) Municipal Street (lane miles) 137.77 137.77 137.77 137.77 137.77 137.77 137.77 137.77

0 Streetlights 2,700 2,700 2,700 2,700 2,700 2,700 2,700 2,700

Public Service Vehicles 24 24 24 23 23 23 23 23

Off-road Equipment 7 7 7 7 6 6

Office Garage Complex 2 I I

Salt Storage Buildings

Emergency Services (5) Fire Stations 9 9 8 8

Vehicle Units 28 28 25 25 25 25 24 24

Source: (I) Middletown Township Licenses & Inspections Department (2) Middletown Township Police Department (3) Middletown Township Park & Recreation Department (4) Middletown Township Department of Public Works (5) Middletown Township Fire Marshal Office

CAFR 2010 | Middletown Bucks

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